Paul Tucker says, "either there have been some fairly profound changes in our economy or we have been blessed by extraordinary good luck over the past decade or so". He highlights that inflation has been less variable and changes in inflation have been less persistent than in previous decades. He also discusses the uncertainty about the extent to which demand pressures feed through into wages and prices - relevant at the present time as slack in the economy is absorbed and the degree of demand pressure and the implications for the inflation outlook become key judgments for the MPC.
Published on
01 March 2005
Press release