Pill's reason for change in forward guidance

BOE Chief Economist Huw Pill says "Much remains to be resolved before we vote on our August policy decision. How I vote on that occasion will be determined by the data that we see and my interpretation of it."

Pill also notes there are four reasons for the change in forward guidance and his personal interpretation:

1. "By focusing on the ‘scale, pace and timing’ of further changes in Bank Rate, the statement clearly widens the discussion beyond the interest rate decision at the next meeting.... this represents the desirable introduction of greater flexibility in our communication of the policy outlook... and the likelihood that we will have to take finely-balanced decisions over rates not just in August but also beyond that, in the face of two-sided risks to the economic outlook into next year."
2. "The reference to ‘any’ increases allows for the possibility of remaining on hold, which helps to capture the potential breadth of opinions on the Committee"
3. "The statement gives an indication of how the MPC intends to respond to future data developments... this places emphasis on identifying potential second-round effects in price and wage setting behaviour. This helps to clarify how the MPC defines it policy ‘reaction function’ at present, prioritising the more persistent component of inflation developments over the headline spot measure."
4. "By signalling preparedness to ‘if necessary act forcefully in response’ to indications of greater persistence in inflation, the statement reflects both my willingness to adopt a faster pace of tightening than implemented thus far in this tightening cycle, while simultaneously emphasising the conditionality of any such change in pace on the flow of new data and analysis."