In a speech, BoE Governor Andrew Bailey said some MPC members put “more emphasis on the continuing shortfall in the level of GDP relative to pre-Covid”. Others “emphasized the continuing direction of travel towards closing that gap and the evidence of cost pressures accompanying the closing”.
However, “all of this group were of the view that the stimulus to monetary policy enacted in response to Covid would need to start to unwind at some point, that unwind should be enacted by an increase in Bank Rate, and if appropriate would not need to wait for the end of the current asset purchase programme.”
