Q: Do you think a recession is necessary to achieve 2% inflation target? Is 2% achievable or is "near to 2%" close enough?

• A: Target is set by parliament. Last year, was concerned by drifting inflation expectations, and paid attention to research showing monetary policy impacting firm future price-setting strategies. Uses this data to show that BoE can use both expectations and the real economy to manage inf. Expectations. As such, can have inflation expectations drift lower (and can work this channel) while core inflation remains sticky.

Q: What can BoE do about pass through of rate rises to savings rates? Any comments on cost of living?

• A: Can't / don't tell banks what their rates should be set at, or how to price products. There are multiple rates that banks offer - longer maturity, etc. These rates have followed bank rate reasonably well - and can see consumers moving cash from sight deposits to higher-rate, longer-maturity products.
• Highly aware of cost of living crisis. Impact differs across income deciles and looks into how different policies impact different households. This goes beyond macro.