It is still too early to declare victory over inflation.

Bank of England Bank of England Governor Andrew Cuomo indicated late Friday that inflation remains a key sticking point for the British central bank, even though many price pressures have eased faster than the BoE initially feared.

Key points

Market events like the one that occurred two weeks ago or so will happen; the test is not whether they will happen, but whether they will create broader instability.

The effects of inflation in the second round appear to have been smaller than we expected.

Communicating when we decide to absorb short-term shocks or trade-offs between inflation and activity is essential but difficult.

It is too early to declare victory over inflation.

I am cautiously optimistic that inflation expectations are becoming more anchored.

There are signs that inflation in China is easing.

Continued low inflation rates are not something we can take for granted.

Policy settings will need to remain restricted for a sufficient period of time.

Inflation has not returned to its target level on a sustainable basis.

We need to chart a steady course for monetary policy.