This all means that there is range of scenarios for the economy and there are uncertainties in both directions. Given these uncertainties, the Board is monitoring the data very carefully month to month. It has the flexibility to respond as needed.
Our judgement, though, remains that further tightening of monetary policy is likely to be required to bring inflation back to target within a reasonable timeframe. Inflation is still too high and while it looks to be on a declining path it is likely to remain higher than target for a few years.