BOE's Carney: MPC Tradeoff on Inflation, Output

The transcript discusses the Monetary Policy Committee's (MPC) approach to balancing inflation and output stabilization. It highlights the challenges posed by sterling's depreciation and the need for a longer horizon to return inflation to target. The MPC implements a comprehensive package of measures to stimulate the economy, considering the low interest rate environment and ensuring the stimulus is effective. The focus is on timely and coherent actions to support growth while managing inflation expectations.

What exceptional tradeoff does the MPC face when inflation persists?

What are the potential adverse effects of exerting further downward pressure on domestic costs?

How does the MPC plan to return inflation to target over a longer period?

Why is the MPC's response considered timely in the context of the current economic outlook?

What measures is the MPC implementing to ensure that the stimulus does not get diluted?