• This is a tough call to judge.
  • No expectations of the need to increase prices any further than here.
  • The way forward is no longer clear, and it will take longer than expected to bring down inflation.
  • Even with a 25 basis point move at the next meeting, it still takes patience from there; There are no expectations of drastic sea changes in inflation rates.
  • Fundamental data on inflation tells a very positive story.
  • It’s a “fairly straightforward story” that inflation can return to 2% without rates rising further.
  • Firms expect wage growth to return to normal; Wages are a lagging indicator of price determination.
  • There is plenty of evidence that spending on services has peaked.