• What really matters for policy is not current rate of inflation but medium-term outlook
• Didn’t raise rates in February because MPC sees CPI risks equally balanced at present
• Domestic contribution to inflation is low
• It is clear that at some point bank rate will have to go up
• Judgement of timing and speed of monetary tightening is not obvious
• First move of tightening likely to be rate hike, QE unwind would come later
• Always chances of ups and downs in growth rates