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BoE's Taylor says we will be close to CPI target sustainably, weaker forecasts in terms of output gap and joblessness

Importance
Level 1
  • CPI has been slightly concerning in recent months.
  • Services CPI has not fallen as quickly or as far as hoped.
  • Looking for services inflation to normalise along with wage growth this year.
  • Expect services CPI to normalise along with pay.
  • More reassured that we are proceeding towards inflation normalisation at a reasonable pace.
  • Jobs forecasts are converging on a pessimistic outlook.
  • Sees risk of inflation undershooting.
  • Are approaching the neutral level, but not there yet.
  • There are 2-3 more cuts until neutral.
  • Youth Unemployment rise is mostly cyclical.
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