At the post meeting press conference, BoE Governor Andrew Bailey said, “since the November monetary policy report we’ve seen the first signs that inflation has turned the corner.”
“We have done a lot on rates already. The full effect of that is still to come through. But it’s too soon to declare victory just yet, inflationary pressures are still there,” he warned.
On BoE’s language, he said, “In the previous language we had a presumption that if the economy evolved as the forecast suggests – that’s in November – then we expect there to be further rates increase. We also had that word ‘forceful’ in there.
“And we have changed both of those points. And I think that reflects the fact that we’ve now got a combination of what I would call – we have we have seen a turning of the corner, but it’s very early days and the risks are very large and it’s really that that I think shapes where we where we go from here.”
