BoE's Greene (annual report): "I believe the disinflationary process is still on track and the risk that inflation remains persistently above target has diminished..."

• "We might instead need to raise rates, but this could damage our credibility, which may in turn make it harder for us to convincingly anchor inflation expectations. It is for this reason that I believe it is appropriate to slow the pace of further cuts until we can be more confident inflation is returning sustainably to target."
• "Although recent data for inflation and wages have come in moderately weaker than we had expected, forward-looking metrics for both are less comforting"
• "Going forward, I will continue to look for evidence that lower inflation outturns have caused these forward-looking indicators to come down."

The comments from BoE's Greene suggest a cautious stance on monetary easing, indicating that while the disinflationary process is ongoing, there are concerns about the risks of inflation staying above target. The acknowledgment of possibly needing to raise rates reflects a delicate balance between mitigating inflation risks and maintaining credibility in their policy framework, highlighting that the path forward may involve a slower pace of rate cuts to ensure sustainable inflation targets are met.