BOE's Bailey: 'Substantial' Impact of Rate Rises to Come

The video discusses the anticipation of mortgage payment changes and the impact of recency bias on market understanding. It explores the slow pass-through from producer to consumer prices and its implications for inflation. The risk of over-tightening in policy decisions is examined, considering longer transmission lags and asymmetry. Finally, the inflation profile is analyzed, focusing on the central path and potential risks around it.

What risks are associated with over-tightening in monetary policy?

How does the inflation profile in the monetary policy report relate to the target?