Deposits by households and firms grew much less, but still significantly: between 2015 and 2022, the narrow M1 aggregate, which also includes currency in circulation, increased by 92 per cent (10 per cent per year on average).
In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, we will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.