It is too early to declare victory over inflation

Bank of England (BoE) Governor Andrew noted late Friday that inflation remains a key sticking point for the British central bank, even though many price pressures have eased more quickly than the BoE initially feared.

Key Highlights

Market events like those that occurred two weeks ago will occur again. The decisive factor will not be whether they occur, but whether they trigger greater instability.

The inflation effects of a second round appear to be smaller than expected.

When we decide to take short-term shocks into account or to make trade-offs between inflation and economic activity, communication is essential but difficult.

It is too early to declare victory over inflation.

I am cautiously optimistic that inflation expectations are better anchored.

There are signs of disinflation coming from China.

We cannot take lower inflation resistance for granted.

The political framework must remain restrictive for a sufficiently long period of time.

Inflation has not yet reached its target level on a permanent basis.

We need to take a clear course in monetary policy.