- Favours a watchful, responsive approach to setting policy
- Bias is towards further tightening but if economy develops differently, then would consider the case for reducing the bank rate
- Impact of higher rates could take longer to come through
- Not yet confident that domestically generated inflation pressures are starting to ease
- There is a range of views on the MPC over development of inflation expectations
Not to be picky but this is one of the few times we are hearing about rate cuts from a central bank policymaker these days. But that is not to say that we are going to see a major policy pivot to that extent just yet. It will require a more recession-like economy alongside cooler inflation pressures to really get to that point.