- Inflation is likely to remain high in the near term
- We need more than ever to maintain flexibility and optionality in the conduct of monetary policy
- We continue to see the risks to the economic outlook as broadly balanced over the medium term
- Sees likelihood that current price pressures will subside before becoming entrenched
- Past surges in energy prices weakened the spending power of households and reduced inflation over the medium term
- The economic impact of the current pandemic wave appears to be less damaging to activity than the previous one
That's a dangerous bet on inflation coming back down. But more notable is this shift everywhere to more 'optionality'. That's a direct reversal of the prior ethos around guidance and forward guidance, in large part because officials were so wrong about not needing to hike until 2024.
