This points toward a slower growth and a higher inflation profile through 2023 than we previously expected, the detail of which will become apparent as we prepare our next QB which we will publish early next month.
Monetary and fiscal policy Whatever the precise out-turns for inflation and economic growth will be over the coming year, both monetary and fiscal policy will play an important role in how the economy overall adjusts through the supply-side shock we are now encountering. The current high rate of inflation is eroding the real incomes of households and reducing economic activity.