"There remain considerable risks to the UK outlook", including the response of households, businesses and financial markets to the UK's withdrawal from the EU."
UK inflation is "likely to overshoot the 2% target over the next three years", according to Bank of England Governor Mark Carney.
In a speech given yesterday, Carney stressed that "there remain considerable risks to the UK outlook", including the response of households, businesses and financial markets to the UK's withdrawal from the EU.
Although Carney expects any reduction in met migration after Brexit to have only a modest impact on prices, he warned that over a shorter horizon "abrupt decreases in migration could result in shortages in some sectors that have become reliant on migrant labour, and contribute more materially to inflationary pressures".
Carney reiterated the MPC's latest minutes that a rise in inflationary pressure would mean "some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target".
He added that the case for a rate rise is reinforced by rising global interest rates, "meaning that monetary policy has to move in order to stand still".
Bank of England MPC member, Gertjan Vlieghe, also stressed last week that "we are approaching the moment when Bank Rate may need to rise".
Vlieghe has previously voted to maintain Bank Rate at 0.25%, but says that he has been "struck particularly" by certain developments in recent months.