The slow growth in demand is expected to lead to some rise in unemployment and a moderation in growth in unit labour costs. It is also expected to reduce cost pressures on firms and to lead to greater discounting than has been the case over recent times. So, it is a complex picture and there are significant uncertainties regarding the outlook.
The Board decided that, having already increased rates substantially, it was appropriate to hold interest rates steady this month and re-examine the situation next month. Thank you very much for listening. I look forward to answering your questions. 6/6  BIS - Central bankers' speeches