Annual inflation up to 2.2% in the euro area

BoE's Pill: A more cautious pace of withdrawing monetary policy restrictions than seen over the past year may be appropriate BoE's Pill: There is a risk that self-sustaining inflationary dynamics embed in expectations BoE's Pill: There is a risk that self-sustaining inflationary dynamics embed in expectations Evolving UK monetary policy in an evolving world − speech by Huw Pill It is a great pleasure to join you this morning for this year’s ICAEW annual conference. Thanks in particular to the Institute’s chief economist Suren Thiru for the invitation to speak, and to him and his team for all their constructive engagement with the Bank of England (BoE) over the past year. We find that interaction invaluable. * * * While I doubt it was chosen with this in mind, the theme of this year’s conference – Thriving in Transformation – is particularly apposite for those of us involved in the conduct of monetary policy at the BoE. In light of the recent Bernanke review of the Monetary Policy Committee (MPC)’s forecasting (and other monetary policy) processes, 1 BoE staff are engaged in a comprehensive innovation programme to renew and improve the preparation and communication of monetary policy decisions.2 It is perhaps for others to assess whether we are ‘thriving’ in this regard. But we are certainly ‘transforming’. That transformation is expressed in the evolution of our approach to taking monetary policy decisions – as the title of my remarks today flags. I know there is i