Bank of England's Deputy Governor for Monetary Policy Ben Broadbent said on Saturday that the BoE predicts that second-round effects of high inflation will take longer to unwind than they took to emerge over the past two years. He added that monetary policy "will probably have to remain in restrictive territory for quite some time yet."
Broadbent said that the bank's policy will respond to the "evidence on spare capacity, and to indicators of domestic inflation, as and when it comes through." However, he said that "given the lags involved," the incoming data does not show "where things are right now but where they were some months ago."
