Wage growth and domestic cost pressures are firming gradually, while the Monetary Policy Committee judges the UK economy to have a very limited degree of slack.
Global GDP growth has strengthened since 2016, while spare capacity has diminished. Rising commodity prices are expected to push up world export price inflation in the near term.
Bank lending rates for companies have risen since August 2017, while Spreads on sterling corporate bonds have
widened a little in recent months.