- If the outlook for inflation changes, committee will adjust policy stance to ensure inflation returns to target
- Wage growth is modest, we do have spare capacity
- There are uncertainties about how firms adjust pricing behaviour as the economy recovers
- Seeing consumption starting to increase, stabilizing job market and falling inflation provide support
- Household consumption starting to increase but relatively weak growth compared to historical patterns
- If we see pricing behaviours change, recovery much stronger and can sustain higher interest rates, we would act to tighten earlier
The market has priced in 46 bps in easing by year end and you can see Breman is heading in that direction.
