Central Banking (CB): How has the outlook changed in the last few months for the Bank?
Charles Goodhart (CG): I think the news on the real economy has got worse. Inflation is probably much as they'd expected as they're getting some pleasure from the decline in oil prices from $147 back down to $120.
A slowdown is occurring and that will bring about a reduction in energy and food prices, which have been the main drivers of inflation. But this is not simply within the command of the Bank alone.