I will start with a look back at where our forecasts stood in August and then highlight the areas in which subsequent developments have impacted the forecasts. I will then set out our current forecasts for inflation, growth and employment.
Finally, I will talk about some of the ways we review our forecasts, and about the main uncertainties around the current forecasts and how they impact our thinking on monetary policy. It is worth emphasising up front that the Board’s priority is to return inflation to the 2–3 per cent band over time.