Ball examines this issue with great finesse and subtlety, but let me try to set out the issues intuitively. It is true that when an exchange rate goes down, this will be expansionary on an economy and if nothing else has happened, then interest rates will need to be higher.
Moreover, wage growth has become increasingly broadbased in recent years. This, together with our monetary policy measures and the ongoing 1/3  BIS central bankers' speeches  economic expansion, is expected to translate into higher underlying inflation over the medium term.