At the report to the Treasury Committee, BoE Governor Andrew Bailey reiterated that most MPC members judge that “some degree of further tightening in monetary policy might still be appropriate in the coming months”.
But he also acknowledged there are “risks on both sides of that judgement”, and a “range of views among these members on the balance of risks”. “This reflects the narrow path we are navigating, given the magnitude of the risks on both sides of our inflation projections,” he added.
Reflecting risks on one side of that “narrow path”, three MPC members voted for 50bps hike in May, instead of 25bps.
Reflecting risks on the other side, there were also a “range of views about the need for, and extent of, any further tightening in policy in the coming months”. Some members judged that “the risks around activity and inflation over the policy horizon were more evenly balanced and that such guidance was not appropriate at this juncture.