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Published for the Treasury Select Committee hearing on 23 February 2022
This is the most challenging period for monetary policy since inflation targeting began in 1992.
Having collapsed in 2020, the economy has only just regained the size it was immediately before the pandemic. Yet, despite what has therefore been zero average growth over that two-year period, the labour market is significantly tighter than on the eve of the pandemic and labour costs have started to accelerate.
