When carrying out its assessment, the Governing Council will follow its monetary policy strategy and concentrate on trends in inflation, looking through fluctuations in measured inflation in either direction if judged to be transient and to have no implication for the medium-term outlook for price stability.
It may be about changing demographics. It may be that potential growth is a bit lower than we used to think – though I don’t think we can know whether that is so at present. But whatever the factors at work, we are unavoidably and inexorably being led to the question: how do we get more growth?