BOE MPC Minutes from today’s meeting 17 March
– significant proportion of recent GBP decline reflects concern over Brexit
– more likely than not that bank rate will increase over forecast period to ensure inflation on target
"Returning inflation to the 2% target requires balancing the drag from
external factors against increases in domestic cost growth. Fully
offsetting that drag over the short run would, in the MPC’s judgement,
involve too rapid an acceleration in domestic costs, one that would risk
being unsustainable and would lead to undesirable volatility in output
and employment. Given these considerations, the MPC intends to set
monetary policy to ensure that growth is sufficient to return inflation
to the target in around two years and keep it there in the absence of
further shocks."
BOE MPC Minutes: Brexit referendum may delay some spending decisions. Notes increased uncertainty
