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Other key Pill quotes

  • "While I recognise that we are now seeing early signs of a downward shift in the persistent component of inflation dynamics, those signs thus far remain tentative. In my view, we have some way to go before such evidence becomes conclusive."
  • "Even if we were to become more confident that the persistent component of inflation is easing, that does not imply the MPC would no longer need to maintain its restrictive stance. On the contrary, the easing in the persistent component of inflation is a result of the policy stance."
  • "Maintaining restrictiveness does not necessarily mean leaving Bank Rate unchanged. For one thing, real interest rates – which may be more relevant for some economic decisions and thus for the transmission of monetary policy – will rise as inflation and shorter-term inflation expectations ease. The MPC will need to take this into account in setting Bank Rate. And what’s more the overall monetary policy stance can remain restrictive – even if less so than previously – even after a Bank Rate cut. A change in the Bank Rate can still leave the level of Bank Rate in restrictive territory."

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