BoE's Mann: "I am confident that if outturns – especially in expectations – are unfavorable to the underlying inflation process, an activist move can bring inflation expectations and outcomes toward the two percent target."

"Given the seasonality of wage negotiations and their dependence on previous inflation and inflation expectations, data outturns (including the expectations for one-year-ahead) in the second half of this year are particularly important for my future decisions" "Looking ahead, the risk is that wage pressures are deferred rather than dissipated, particularly if future pay settlements – including in these more collectively bargained segments – are set against the backdrop of higher realized inflation and elevated expectations in the second half of this year. " "The trade-off between inflation and activity has re-emerged" (reiteration) "While the most recent observation of the Citi/YouGov measure of household inflation expectations has decreased from its April peak, it remains within the region of these non-linear dynamics, and both short- and long-term expectations remain elevated relative to historical averages and their pre-Iran war levels." Impact of energy bills and economic slack underscore the pertinence of fiscal policy in getting back to target. Prepared to tighten if the inflation outlook deteriorates.