Core inflation should remain slightly above 2 per cent over the coming months, given pressures on capacity and the impact of higher core food prices.
These two elements of the monetary policy stance underlie the Governing Council’s decisions at our meeting on 9 June. Consistent with moving gradually, we announced that we will end net asset purchases under our asset purchase programme on 1 July and intend to raise our three key interest rates by 25 basis points at our next meeting on 21 July.