- Inflation expectations for 2-3 years out have risen less than short-term measures
- MPC judged medium-term inflation expectations are still well anchored and will monitor closely
- MPC notes that CPI will be below 2% target at end of forecast period, will probably fall little further beyond that point
- This period of higher inflation is likely to be temporary
- The longer the period of above-target inflation, the greater the chance it translates into expectations
- What happens to energy prices is very uncertain, there are material risks around it
- Our inflation framework recognizes there will be occasions when inflation will depart from target due to shocks
- Unemployment is not expected to rise materially in near term but there is high degree of uncertainty
- Rise in unemployment after furlough is only expected to be small
- Given lag between change in monetary policy and impact on inflation, BoE will always focus on the medium term
- Monetary policy can do little to affect near-term inflation