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Bailey: Short-Term Inflation To Remain Volatile; Risks Broadly Balanced

BOE

Bailey's prepared opening comments to the press conference continue:

  • Inflation will likely to continue to be volatile in the short term - projected to rise in the near term.
  • In the central projection CPI rises above target towards the end of the year this mainly due to energy impacts. This should have few impacts over the medium term. Conditional on the market path for interest rates, inflation returns to around 2% in the M/T.
  • The risks to the projection are judged to be broadly balanced. Measures of inflation expectations have stabilised since the February report.

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