Projection that we present today is very much into parts. Im going to begin with the first part. Starting near term outlook. This chart shows the evolution of Consumer Price inflation and its components since 2018. It shows that inflation has come off the peak in october last year and that it continues to fall over the rest of this year in our near term projection. Thats the piece showed in the shade of part of the chart. This fall can be attributed in large part to a full on contribution from energy. Fuel prices have declined, electricity and gas prices have stabilised, albeit at a higher level. The Dark Orange Bars on this chart show how the contribution from Energy Prices falling and turning negatively in the coming months. Giving off gems price cap on energy and gas bills, we expect inflation to take a further step down in the july dates will be published in two weeks� time. That will come down to around 7 at that point. Following a larger step down in 0ctober� s data to around about 5 on that basis. This gradual will help explain the difference between current Headline Inflation in this country and in the europe area where wholesale Energy Prices feed three more directly to Consumer Prices. Where there is more uncertainty is around the time it will take the other non energy to come down as well. Price inflation forfood come down as well. Price inflation for food and nonalcoholic beverages has been very high. But it does appear to have peaked and as you can see on this chart, there are signs on the monthly figures that it is starting to ease. Evidence collected by the bank� s Regional Agents suggest that a moderation in Food Import Prices being passed through the supply chain to Consumer Prices. So we do expect food Price Inflation to come down gradually over the rest of this year. The contribution from food Price Inflation falls accordingly in our near term projection. From about two Percentage Points to one. 25 Percentage Points to one. 25 Percentage Points to one. 25 Percentage Points towards the end of the year. Call goods Price Inflation, it is taking time for the four Energy Prices to work through the price chain and the price of imported goods are continuing to rise, despite the fall in export prices. That� s why in our central projection we expect call goods Price Inflation to come down gradually. Let me be clear, we do expect call goods inflation to ease over the rest of the year and there are indicators that suggest it could happen faster than our projection. As you can see, in this chart, out put producer Price Inflation has been slowing significantly since its peak in the middle of last year, add indicated by the orange line. That should help to reduce non Energy Consumer goods Price Inflation which is shown on the blue line. As Cost Pressures ease on the supply chain. As the chart shows, that has been the case when producer preservation has fallen in the past. The final component of inflation Services Prices which is now due beating more to inflation. As you can see in this chart, service Price Inflation was 7. 2 injune which was higher than we projected in may and it remains high on our near term projection for the rest of the year. This upside surprise was primarily driven by some of the more volatile components of service prices, such as air fares and Package Holidays and also vehicle Exercise Duty which is unrelated to the balance of demand and supply in the economy. So we should not read too much into this price for this reason. Nevertheless, since other subcomponents of service Price Inflation are closely linked to underlying cosplayers in the economy, continued strength in services Price Inflation may suggest that high inflation could persist for longer. 0n the short term, let me now turn to the second part of a story which the medium term outlook. 0ver story which the medium term outlook. Over the medium to, we must ensure that Inflation Returns in a timely manner. We are watching service Price Inflation very carefully along with other factors. Price inflation very carefully along with otherfactors. Economic activity are shown is resilience over recent quarters. The increases in bank rates will be implemented to an increasing degree. There is. As we look into next year, gdp growth is projected to be weakened. The balance of demand and supply shifting in our prediction. An increasing degree of economic slack is emerging of the middle of next year. This will help to reduce inflation in the uk economy. As chart five illustrates, in the mpc� s inflation for Consumer Price inflation for Consumer Price inflation which is conditioned on the market price for Interest Rates. Inflation is more likely to end the focus group below rather than above it, albeit slightly. In the modal, almost likely case, inflation is 1. 7 in two years� time and 1. 5 in the Third Quarter of 2026. However, the Third Quarter of 2026. However, the committee continues to judge that risks around that central case is skewed towards high inflation. Adjusting the Modal Projection for the balance of those risks is close to, just below the 2 period. The projection for inflation is broadly similar on the alternative assumption of the product that is discussed in the report. This illustrates that bank rates can secure return of inflation to the target. The market curve is higher than the current Level Bank Rates in the coming quarters but then falls below it further out. Averaging just under 5. 5 over the next three years. A lot will depend on what happens in the Labour Market. There are signs that the Labour Market is loosening, the Unemployment Rate rest slightly at 4 in the three months and the Ratio Vacancies to the number of unemployed job seekers. That has continued to ease. As shown in chart six. The Labour Market remains strong. Annual private section regular pay growth increase further to 7. 7 . This is above expectations and notably stronger than standard models of wage growth based on productivity, short term Inflation Expectations and tightness in the Labour Market would have predicted. Chart seven gives you a brief insight into more of the entrails of the process because what this chart shows is a slave which you can see in light grey illustrating the range of forecasts that we can derive from the models. You can also see on the line, the mpc� s projection for private sector wage growth. That� s line and that projection is our judgment on the committee, you can see that wage growth is expected to ease more slowly in that line in the models would predict. What we have here in a nutshell is that the empirical models illustrate what might happen, wage setting will be based on Inflation Expectations. The best collective view of the committee is that we don� t have enough evidence at certain to be sure that wages will be set in this way. In ourjudgment, upside surprises on wage and inflation will suggest that it will take longer for the second round effects for them to go away than it did for them to appear in response to a sharp rise in prices. Interacting with a tight Labour Market, that is expected to result in a greater resistant in wage inflation. With it,. I also show this chart because the difference between empirical model outputs and the committee� s best judgment which is obviously clear here, i think one illustration of the importance of reflecting on how we should adapt in a world which increasingly faces uncertainty. I am delighted as we announced recently, ben is a renowned economist and i think it is an ideal person to lead this, which is really what lessons do we derive from this type of situation and going forward. Let me conclude on today� s policies. The news to wages and its implication for Inflation Persistence should be seen within the context of the overall data news sincejune. As we approach thejune meeting, data outturn for strong across indicators of Inflation Persistence. Including Service Presentation and employment as well as wages. The mpc responded to this by increasing bank rate by 0. 5 at thejune meeting. Since then, more pay growth has come in stronger than expected, other data news has been more mixed in terms of its implication for the persistence of inflationary pressures and thus the outlook for inflation in the medium term. That is why the mpc has voted to increase the bank rate by 0. 25 today. Given the significant increase in bank rates since the start of the cycle, it is restricted in our view. The evidence is now the that it in our view. The evidence is now the thatitis in our view. The evidence is now the that it is having an impact. To return inflation target, policy needs to continue to be restrictive and today we have taken the Decision Thatis and today we have taken the decision that is consistent with that which will help to return inflation to its target. I� m not going tojudge will help to return inflation to its target. I� m not going to judge what the path of rates will be, not last because as report indicates, more than one half made deliver inflation targets full stop we have ta ken than one half made deliver inflation targets full stop we have taken the decision today and we will go on judging what is most appropriate based on the evidence that we will see. The mpc will continue to monitor closely indications of inflationary pressures, including the tightness of Labour Market conditions and the behaviour of wage growth and service Price Inflation. If there were to be evidence for more persistent pressures, then further tightening would be required. We will ensure that bank rate is sufficiently restricted for sufficiently long to turn inflation to the 2 target sustainably in the medium term, in light with the rebate. With that, we will be happy to take your questions. Thank you. Some of your final words there, you were some of your final words there, you were talking about having rates sufficiently high for sufficiently lon sufficiently high for sufficiently long to sufficiently high for sufficiently long to bring inflation back to target long to bring inflation back to target. Can you expand on that little target. Can you expand on that little bit target. Can you expand on that little bit because there are many households out there that are looking households out there that are looking at Interest Rates, they are hoping looking at Interest Rates, they are hoping that after they were high for a while hoping that after they were high for a while that they would start to come a while that they would start to come down, are you saying that actually come down, are you saying that actually we need to be prepared for interest actually we need to be prepared for Interest Rates to be high for longer than a Interest Rates to be high for longer than a lot Interest Rates to be high for longer than a lot of people might be expected right now . It� s than a lot of people might be expected right now . Its worth startin expected right now . Its worth starting with expected right now . Its worth starting with them expected right now . Its worth starting with them market expected right now . Its worth starting with them market because the market curve does have a fall in Interest Rates, it goes higher before that happens. I made a point about what that delivers as an average rate for the time. There are many potential paths that we have also shown as we always do, what happens if you have a concentrate. That delivers a return to target. The point i would make is that we have to balance the risks here. We have to balance the risks here. We have risks both ways. There are inflation risks, certainly on the upside is reflected on the mean prediction. Relative to may, more of the risk that we saw in may, we think is crystallise and is in the Modal Projection, wejust think is crystallise and is in the Modal Projection, we just have a smaller mean projection and we had in may. We are also conscious that, the projection of the activity has weakened because the curve is higher thanit weakened because the curve is higher than it was in may and will have to bear that path in mind as well. This bear that path in mind as well. As andrew says, there are different paths andrew says, there are different paths that andrew says, there are different paths that may andrew says, there are different paths that may achieve andrew says, there are different paths that may achieve the andrew says, there are differentl paths that may achieve the same andrew says, there are different paths that may achieve the same end. 0ne paths that may achieve the same end. One particular paths that may achieve the same end. One particular point, paths that may achieve the same end. One particular point, there paths that may achieve the same end. One particular point, there was paths that may achieve the same end. 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Interest rates than they do to the overnight bank rate. That Interest Rates than they do to the overnight bank rate. That is Interest Rates than they do to the overnight bank rate. That is one. Overnight bank rate. That is one illustration overnight bank rate. That is one illustration of overnight bank rate. That is one illustration of why overnight bank rate. That is one illustration of why there overnight bank rate. That is one illustration of why there might i overnight bank rate. That is one. Illustration of why there might be lots of illustration of why there might be lots of paths illustration of why there might be lots of paths that illustration of why there might be lots of paths that keep illustration of why there might be lots of paths that keep that lots of paths that keep that twoyear lots of paths that keep that two year stable. Lots of paths that keep that two year stable. We lots of paths that keep that two year stable. We had i lots of paths that keep that two year stable. We had a| lots of paths that keep that two year stable. We had a look at that reaction two year stable. We had a look at that reaction of two year stable. We had a look at that reaction of the two year stable. We had a look at that reaction of the market two year stable. We had a look at that reaction of the Market Curvel that reaction of the market curve and specifically that reaction of the market curve and specifically of that reaction of the market curve and specifically of two that reaction of the market curve and specifically of two year and specifically of two year interest and specifically of two year Interest Rates and specifically of two year Interest Rates todays and specifically of two year. Interest rates todays decision and specifically of two year Interest Rates todays decision and they moved Interest Rates todays decision and they moved very Interest Rates todays decision and they moved very little, Interest Rates todays decision and i they moved very little, immediately before they moved very little, immediately before the they moved very little, immediately before the decision they moved very little, immediately before the decision they they moved very little, immediately before the decision they were they moved very little, immediately before the decision they were down| before the decision they were down three before the decision they were down three basis before the decision they were down three basis points before the decision they were down three basis points so before the decision they were down three basis points so i before the decision they were down three basis points so i dont before the decision they were down three basis points so i dont think. Three basis points so i dont think this has three basis points so i dont think this has had three basis points so i dont think this has had a three basis points so i dont think this has had a tremendous three basis points so i dont think| this has had a tremendous effect. Which path we end up being on will depend on the evidence and on the evidence of persistence. That is what is driving the decision. Abs, evidence of persistence. That is what is driving the decision. Ads, 11th what is driving the decision. A lot ofthe what is driving the decision. A lot of the upgrades what is driving the decision. A lot of the upgrades that what is driving the decision. A lot of the upgrades that you what is driving the decision. A lot of the upgrades that you have made to your of the upgrades that you have made to your Inflation Forecasts in the latter to your Inflation Forecasts in the latter part to your Inflation Forecasts in the latter part to do with the nbc recognising that some of the risks to inflation that you have warned about to inflation that you have warned about in to inflation that you have warned about in previous forecasts are in fact starting to happen. Why are you only 30 fact starting to happen. Why are you only 30 starting to recognise these risks now only 30 starting to recognise these risks now given these pressures have been there risks now given these pressures have been there for months and i was really been there for months and i was really interested in that wage growth really interested in that wage growth start and yourjudgment that it will growth start and yourjudgment that it will remain more stubborn. Is that the it will remain more stubborn. Is that the first time we moved so away from traditional models . I that the first time we moved so away from traditional models . From traditional models . I dont have them from traditional models . I dont have them with from traditional models . I dont have them with me from traditional models . I dont have them with me but from traditional models . I dont have them with me but if from traditional models . I dont have them with me but if i from traditional models . I dont i have them with me but if i showed you the chart the last time, the line would have been near the top of this wave and we have been near the top of this way for quite a while. This move reflects the evidence we have had since may in terms of the out terms. I willjust come back to emphasise the point i made the remarks because i think this is a really important point. It� s what links the first half to the second half of those two parts. If the fall in inflation that we think now is going to happen this year translates into Inflation Expectations and if those inflation excitation translate into. There is a possibility that that line will actually go down and go nearer to this wave because this wave put great weight under Inflation Expectations. The question Inflation Expectations. The question in our mind is what confidence we have of that happening . To answer your question, we have seen evidence in the last couple of months that element of the Labour Market, other parts of the Labour Market i think are softening but that� s pay element of the Labour Market, that� s the point i would draw out. You can see from that that although i would never want in these events to say there is only one indicator that matters because that� s not true, obviously. It is employed to part in judging a future path. You obviously. It is employed to part in judging a future path. Judging a future path. You draw attention to judging a future path. You draw attention to this judging a future path. You draw attention to this word judging a future path. You draw attention to this word Risk Attention to this word risk crystallising. Thats the first time we have crystallising. Thats the first time we have used that word in this context we have used that word in this context but the risks on persistence have been context but the risks on persistence have been crystallising prior, through have been crystallising prior, through this year, that is why we have through this year, that is why we have been through this year, that is why we have been having to raise rates in response have been having to raise rates in response to have been having to raise rates in response to increasing evidence of persistence so its not suddenly that that persistence so its not suddenly that that evidence has appeared, we have been that that evidence has appeared, we have been seen evidence for some time which have been seen evidence for some time which is why we are having to keep time which is why we are having to keep rising time which is why we are having to keep rising rates. Can you explain why you have used that new can you explain why you have used that new language can you explain why you have used that new language on can you explain why you have used that new language on bank can you explain why you have used that new language on bank rates. That new language on bank rates being that new language on bank rates being restricted that new language on bank rates being restricted for that new language on bank rates being restricted for sufficiently. Being restricted for sufficiently long . Being restricted for sufficiently long . Are being restricted for sufficiently long . Are you being restricted for sufficiently long . Are you concerned being restricted for sufficiently long . Are you concerned thatl long . Are you concerned that households long . Are you concerned that households may long . Are you concerned that households may have long . Are you concerned that| households may have become accustomed households may have become accustomed to households may have become accustomed to zero households may have become accustomed to zero 15 households may have become accustomed to zero 15 years. Households may have become. Accustomed to zero 15 years and households may have become accustomed to zero 15 years and they expect accustomed to zero 15 years and they expect rates, accustomed to zero 15 years and they expect rates, that accustomed to zero 15 years and they expect rates, that 5 accustomed to zero 15 years and they expect rates, that 5 is accustomed to zero 15 years and they expect rates, that 5 is the expect rates, that 5 is the aberration expect rates, that 5 is the aberration and expect rates, that 5 is the aberration and expect expect rates, that 5 is the aberration and expect them expect rates, that 5 is the. Aberration and expect them to expect rates, that 5 is the aberration and expect them to fall if inflation aberration and expect them to fall if inflation falls aberration and expect them to fall if inflation falls back aberration and expect them to fall if inflation falls back to aberration and expect them to fall if inflation falls back to target if inflation falls back to target and thats if inflation falls back to target and thats not if inflation falls back to target and thats not going if inflation falls back to target and thats not going to if inflation falls back to target i and thats not going to happen . If inflation falls back to target and thats not going to happen . And does it and thats not going to happen . And does it also implicitly and thats not going to happen . And does it also implicitly suggests does it also implicitly suggests that rates does it also implicitly suggests that rates are does it also implicitly suggests that rates are very does it also implicitly suggests that rates are very close does it also implicitly suggests that rates are very close to does it also implicitly suggests. That rates are very close to peak, that rates are very close to peak, that you that rates are very close to peak, that you are that rates are very close to peak, that you are having that rates are very close to peak, that you are having to that rates are very close to peak, that you are having to make that rates are very close to peak, that you are having to make the i that you are having to make the statement that you are having to make the statement now . That you are having to make the statement now . Let that you are having to make the statement now . That you are having to make the statement now . Let me start. Lets start with where statement now . Let me start. Lets start with where the statement now . Let me start. Lets start with where the word start with where the word restrictive first gets you which is to describe this dart of policy as of now. And how we think policy is working through, policy is having an effect, that is in and start important Starting Point. Both the Federal Reserve have used this objective, not because we love to say words that because we think restrictive is a reasonable description of where we are at the moment. Of course, given the lags in the policy, it is not surprising that it has taken some time for this evidence to come through but we now think that it is coming through and we see it. That is a Starting Point and i think that you are right to say that coming to the end, in order to get inflation back to target, we are going to have to keep the starts of policy but i want to emphasise again but this stance, can import incorporate a number of quite a lot of different parts of Interest Rates and that is very important point to make. � ,. ,. , and that is very important point to make. � ,. ,. , make. Its not quite true to say that the forecast make. Its not quite true to say that the forecast depends make. Its not quite true to say that the forecast depends on. Make. Its not quite true to say i that the forecast depends on the average that the forecast depends on the average level that the forecast depends on the average level of that the forecast depends on the average level of interest that the forecast depends on the average level of Interest Rates i average level of Interest Rates until average level of Interest Rates until then average level of Interest Rates until then but average level of Interest Rates until then but it average level of Interest Rates until then but it is average level of Interest Rates until then but it is closer average level of Interest Rates until then but it is closer to. Average level of Interest Ratesl until then but it is closer to the truth until then but it is closer to the truth than until then but it is closer to the truth than it until then but it is closer to the truth than it is until then but it is closer to the truth than it is to until then but it is closer to the truth than it is to say until then but it is closer to the truth than it is to say that until then but it is closer to the truth than it is to say that a truth than it is to say that a depend truth than it is to say that a depend on truth than it is to say that a depend on the truth than it is to say that a depend on the interest truth than it is to say that aj depend on the Interest Rate truth than it is to say that a depend on the Interest Rate only today~ depend on the Interest Rate only today as depend on the Interest Rate only today as i depend on the Interest Rate only today. As i was depend on the Interest Rate only today. As i was talking depend on the Interest Rate only today. As i was talking with depend on the Interest Rate only today. As i was talking with ed, | depend on the Interest Rate only. Today. As i was talking with ed, two or three today. As i was talking with ed, two or three interest today. As i was talking with ed, two or three Interest Rates today. As i was talking with ed, two or three Interest Rates is today. As i was talking with ed, two or three Interest Rates is more or three Interest Rates is more important or three Interest Rates is more important than or three Interest Rates is more important than the or three Interest Rates is more important than the driver or three Interest Rates is more important than the driver of. Or three Interest Rates is more important than the driver of private sector important than the driver of private sector interest important than the driver of private sector Interest Rates, important than the driver of private sector Interest Rates, for important than the driver of private sector Interest Rates, for example. | sector Interest Rates, for example. We have sector Interest Rates, for example. We have to sector Interest Rates, for example. We have to make sector Interest Rates, for example. We have to make sure sector Interest Rates, for example. We have to make sure inflation sector Interest Rates, for example. I we have to make sure inflation comes down we have to make sure inflation comes down sustainably we have to make sure inflation comes down sustainably to we have to make sure inflation comes down sustainably to target we have to make sure inflation comes down sustainably to target and down sustainably to target and therefore. Down sustainably to target and therefore, we down sustainably to target and therefore, we have down sustainably to target and therefore, we have to down sustainably to target and therefore, we have to be down sustainably to target and i therefore, we have to be focused down sustainably to target and therefore, we have to be focused on making therefore, we have to be focused on making sure therefore, we have to be focused on making sure that therefore, we have to be focused on making sure that average therefore, we have to be focused on making sure that average interest. Making sure that average Interest Rates, making sure that average Interest Rates, given making sure that average Interest Rates, given the making sure that average Interest Rates, given the Information Making sure that average Interest Rates, given the information we. Making sure that average interest i rates, given the information we have iilht rates, given the information we have right now. Rates, given the information we have right now. Is rates, given the information we have right now, is sufficient rates, given the information we have right now, is sufficient to rates, given the information we have right now, is sufficient to ensure right now, is sufficient to ensure that happens right now, is sufficient to ensure that happens. That right now, is sufficient to ensure that happens. That can right now, is sufficient to ensure that happens. That can change, i right now, is sufficient to ensure i that happens. That can change, is not as that happens. That can change, is not as if that happens. That can change, is not as if affixing that happens. That can change, is not as if affixing the that happens. That can change, is not as if affixing the entire that happens. That can change, is not as if affixing the entire path. Not as if affixing the entire path of interest not as if affixing the entire path of Interest Rates not as if affixing the entire path of Interest Rates further not as if affixing the entire path of Interest Rates further today l not as if affixing the entire path i of Interest Rates further today and i of Interest Rates further today and i cant of Interest Rates further today and i cant say of Interest Rates further today and i cant say exactly of Interest Rates further today and i cant say exactly where of Interest Rates further today and i cant say exactly where the of Interest Rates further today and i i cant say exactly where the people will be i cant say exactly where the people will be 0ur i cant say exactly where the people will be. Our focus i cant say exactly where the people will be. Our focus is i cant say exactly where the people will be. Our focus is i cant say exactly where the people will be. Our focus is the i cant say exactly where the people will be. Our focus is the peak will be. Our focus is the peak will be. Our focus is the peak will be will be. 0ur focus is the peak will be i will be. Our focus is the peak will be. I dont will be. 0ur focus is the peak will be. I dont think will be. Our focus is the peak will be. I dont think we will be. Our focus is the peak. Will be. I dont think we are seeing any more will be. I dont think we are seeing any more than will be. I dont think we are seeing any more than that, will be. I dont think we are seeing any more than that, households. Will be. I dont think we are seeing i any more than that, households right now i any more than that, households right now i have any more than that, households right now i have been any more than that, households right now i have been facing any more than that, households right now i have been facing two any more than that, households right now i have been facing two year now i have been facing two year interest now i have been facing two year Interest Rates, now i have been facing two year Interest Rates, they now i have been facing two year Interest Rates, they have now i have been facing two year Interest Rates, they have for now i have been facing two year. Interest rates, they have for some time Interest Rates, they have for some time. Remarkably Interest Rates, they have for some time. Remarkably higher Interest Rates, they have for some time. Remarkably higher than Interest Rates, they have for some| time. Remarkably higher than they have been time. Remarkably higher than they have been for time. Remarkably higher than they have been for decades. Time. Remarkably higher than they have been for decades. That time. Remarkably higher than they have been for decades. That was. Time. Remarkably higher than they. Have been for decades. That was not our particular have been for decades. That was not our particular reasoning have been for decades. That was not our particular reasoning for have been for decades. That was not our particular reasoning for saying i our particular reasoning for saying this our particular reasoning for saying this. ,. ~ our particular reasoning for saying this. ,. ,. , this. You talked about there being some good this. You talked about there being some good news this. You talked about there being some good news at this. You talked about there being some good news at the this. You talked about there being some good news at the beginning | this. You talked about there being l some good news at the beginning of your Opening Statement but weve got slower your Opening Statement but weve got slower growth, high unemployment, higher slower growth, high unemployment, higher bank rate, inflation looks more higher bank rate, inflation looks more challenging. It sounds like the wae more challenging. It sounds like the wage price more challenging. It sounds like the Wage Price Spiral Looks like its crystallising. Whats gone wrong with the crystallising. Whats gone wrong with the economy and has the bank lost control . | with the economy and has the bank lost control . Lost control . I wouldnt agree with that. To lost control . I wouldnt agree with that to start lost control . I wouldnt agree with that. To start with, lost control . I wouldnt agree with that. To start with, the lost control . I wouldnt agree with that. To start with, the good that. To start with, the good news is, i said a few minutes ago that i think that the path of. The number that we saw. I showed you that chart and goods prices which compared, there is a major puzzle on that chart as to why you had this dislocation between consumer and producer prices. It has been puzzling us. We really had thought that we would start to see evidence of that fall sooner but we have seen it now. You can have a bit too much weight injust one number but i think it� s not an aberration. I think it� s not an aberration. I think it� s not an aberration. I think it is a sign that inflation is coming down and as i said in the opening remarks, because of the way that the uk Energy Policies work, there are two quite substantial base effects to come and those base effects to come and those base effects are annual effects. There would have to be a massive change in Energy Prices take those away now. There is a much more assured path downwards of inflation. That� s a good thing. As far as the second half of the forecast, where i said policy and judgment and in terms of how policy will work, let me give account to view. The economy has been much more resilient. That� s good news. We have to then set policy to work with it but the fact that, for instance, we were sitting here, back last november, saying we thought it was going to be a long shallow root session, a lot of that was based on Energy Prices which are much higher. That has not transpired. We have had a much different and resilient picture of economic activity. We have seen some increase in unemployment, but we all want to. Their arguments that you can deftly put the other way. In the run up to the june 50 basis point in the run up to the june 50 basis point hike, in the run up to the june 50 basis point hike, we saw two upward surprises point hike, we saw two upward surprises in cpi. Going in todays decision, surprises in cpi. Going in todays decision, we had won downwards a prize decision, we had won downwards a prize in decision, we had won downwards a prize in cpi decision, we had won downwards a prize in cpi figures. I have a question prize in cpi figures. I have a question about your reaction going forward, question about your reaction going forward, are you likely to place more forward, are you likely to place more emphasis on where Inflation Numbers more emphasis on where Inflation Numbers come in relative to your own expectations numbers come in relative to your own expectations or are you watching the abolition expectations or are you watching the abolition of expectations or are you watching the abolition of domestic inflationary pressures, things like service Price Inflation, pressures, things like service Price Inflation, more than where the Headline Inflation, more than where the Headline Number comes in relative your expectations . My Headline Number comes in relative your expectations . Headline number comes in relative your expectations . My first answer would be all your expectations . My first answer would be all of your expectations . My first answer would be all of the your expectations . My first answer would be all of the above. Your expectations . My first answer would be all of the above. What. Your expectations . My first answer| would be all of the above. What are your ways have to do, we have to look at the news and of course then judge how the news in a sense sits against where we thought things would go to. Just to put that into context, as you rightly say, we had some quite large evidence injune which was quite clearly at odds with the view we took in may. Today, i would say we have seen one thing sort of correct itself and one thing not correct itself. The one thing that� s correct itself is actually Headline Inflation. Because Headline Inflation is exactly where we thought it would be in the may forecast. The components are not quite the same. The thing that hasn� t cracked itself coming back to some of the early discussions is pgy some of the early discussions is pay. And the Labour Market particularly. Easy summer that also in Services Prices and i made that caveat that what looks i can potentially nonpersistent bit services and persistent services. We had some surprises injune, we have seen some of that turnaround. Brute seen some of that turnaround. We will leave that Press Conference there. That is the Bank Of England governor answering questions there. He says there is evidence that the significant increase in bank rates that we have seen over the last few months is having an impact. He won� t predict what the uk� s puffin Interest Rates will be but he says to return to the target of 2 , the policy needs to continue. You are watching bbc news. For the. To 5. 25 as it continues to try to bring down inflation. 0urjob is to make absolutely sure inflation falls all the way back to the 2 target and stays low. We� ll be looking at the impact on borrowers and savers. We� ll be assessing what the news means for Mortgage Holders and for savers. Also this lunchtime. Security barriers go up around the courthouse in washington where donald trump will appear today, charged with plotting to overturn the 2020 election result. The refugees who fled ukraine in the early days of the war we follow one family as they return to their homeland. A Special Report from canada on a devastating wave of wildfires being blamed on climate change. Mama. Just killed a man. And remembering the rock legend Freddie Mercury a new exhibition of his personal possessions and memorobilia goes on show, including this tiny comb for his moustache. And coming up on bbc news, both were already through to the semis but a big win nonetheless for england as they beat world Number One Team australia at the Netball World Cup for the very first time. Good afternoon. In the last hour, Interest Rates have gone up again, for the 14th time in a row