Addressing The North East Chambers of Commerce, the Bank of England's Monetary Policy Committee (MPC) member Megan Greene noted that she believes it is appropriate to take a gradual approach to removing restrictiveness. She also stressed that she would be looking for incoming data to provide evidence that the risk of persistent inflation is diminishing.
The official noted that services inflation in the UK has been moving in the right direction, while wage growth has fallen but remains above what the BoE's suite of models can explain.
In addition, Greene expressed the view that the risks to activity are to the upside, which could suggest the long-run neutral rate is higher.