The MPC is likely to respond relatively promptly to news about fiscal policy.

The justification for tighter policy is clear.

It remains the case that most of the overshoot in headline CPI inflation, relative to target, reflects the direct impact of higher import prices.

It also remains likely that much of this is likely to fade as those prices stabilize.

If government support mitigates the effect of import costs, there is more at the margin for monetary policy to do.

There is now some uncertainty about the prospective scale and nature of the government’s energy subsidies.

We are unlikely to know for a while precisely the form that will take.

Not clear if rates must rise as much as the market sees.

Dropping the energy plan will boost inflation.