BOE: Greene: Case 2 most likely. She sounds more "central" than hawkish at first

Greene still sees case 2 as most likely and risks of case 1 have reduced in favour of cases 2 or 3. This seems quite in line with the Minutes and the wider MPC view rather than being an outright hawk. Highlights below:

• "I still believe we are firmly in a Case 2 state of the world, in which a negative output gap must open to squeeze remaining inflationary persistence out of the economy and return inflation sustainably to our 2%
  target by the end of the forecast period. This motivated my recent vote in favour of a 25 basis point cut in Bank Rate. That said, I think the risks around this view of the world have shifted since the beginning of our cutting cycle last August."
• " I think there are definitely risks that the recent weakness in activity is demand-driven. But the evidence suggests to me that this weakness is more a question of constrained supply. In my opinion, this means the probabilities have shifted away from what we’ve called a Case 1 world towards a Case 2 or 3 world. That is to say it’s less likely inflation persistence will fade on its own accord, and more likely monetary policy will need to remain restrictive in order to either generate a negative output gap to bring inflation to target sustainably or to lean against structural shifts in the economy. As a result, I believe it is appropriate to maintain a cautious and gradual approach to removing monetary restrictiveness."