• We have moved policy to an area that restricts aggregate demand
• There is no reason for us to abandon it or exit it prematurely
• The path to sustainable growth is narrow
• But it can be traversed with a proactive, balanced policy

As they are still on the path of tightening policy further to guard against high inflation, these remarks are pretty much just a supportive element. If and when price pressures do ease and they can start to look at pausing, the narrative can quickly switch around especially if economic conditions worsen rapidly.

This article was written by Justin Low at www.forexlive.com.