This central expectation – subject to all the usual uncertainties inherent in forecasting – suggests, as we said at the time, that “further tightening of monetary policy is likely to be required at some point for inflation to remain consistent with the 2–3 per cent medium-term target”.
It remains, though, a matter for judgement by the Board as to whether that point has been reached. At its most recent meeting, the Board’s view was that it had not been. New information will, as always, be important in our monthly assessments of what monetary policy needs to do.