Comments from BOE's John Cunliffe
There are limits to the extent to which above target inflation can be tolerated
Policy rate may need to depart from natural rate if policymaker is faced with shocks that create an inflation/growth trade off
The exchange rate shock has made it more difficult for policy to follow the natural rate, which is close to zero and still likely to be negative
Fully subscribes to the forecast and policy stance set out at Nov inflation report
International political developments have pushed up market rates and price expectations and could presage longer-term change
Nothing market moving in these comments and we know that Carney has already said that there will be limits to what they let under the inflation bridge.
