What would challenge the MPC throughout the year was the domestic dilemma – the trade-off between inflation and growth was set to become sharp and the tension between the two so acute that it would eventually impact the voting pattern of the MPC.
2 There is a large empirical literature assessing the spillovers from Federal Reserve policy actions, including  those from unconventional policies such as large-scale asset purchases—for example, Fratzscher, Lo Duca, and Straub (2013); Rogers, Scotti, and Wright (2014); Neely (2015); and Sahay and others (2014).