When does the Bank’s relaxed stance become complacency? | Nils Pratley

With inflationary pressures all too visible, Threadneedle Street could perhaps be slightly more worried

Inflation is likely to exceed 3% for a temporary period", says the Bank of England's monetary policy committee, which would prefer the emphasis to be put on the word temporary". The rate-setters, or most of them, are sticking to their script: once the inevitable strong period for growth and inflation is out of the way, both readings will fall back, so there's no need to be alarmed.

The benign view has a lot going for it, of course. Inflation plunged last year during lockdowns and the reopening phase was bound to produce a spike of some size. May's inflation reading was 2.1%, a relative surge from just 0.7% in March. But if the peak proves to be 3%-ish, the transitory" narrative - central bankers' favourite word these days - would still be intact.