The signs of wage inflation are not so worrying to demand an immediate response from a monetary policy point of view. There is room to wait to be certain that the real wage developments are indeed consistent. The problem in shifting the policy stance (more than the increasing of 0.25% in the nominal interest rate per se) is that it has lead to an appreciation of the British pound which eventually will reduce CPI inflation and limit the needed rebalancing of the UK economy. Compared to about 1 year ago the USD/GBP exchange rate has appreciated around 16%. Monetary policy is not neutral with respect to productivity developments as I discuss in a recent vox column (https://voxeu.org/article/keynesian-model-long-run-growth) and in a small open economy this link is further amplified by exchange rate changes. The approach highlighted in the vox column requires a different way of thinking about the link between cyclical fluctuations and trend. This approach would then suggest that waiting for a sustained pickup in business investment that would result in higher productivity growth would minimize the risk of a policy mistake and could have long lasting effect. Moreover trying to mimic the normalization of monetary policy as in the US economy does not keep into account a key difference in terms of fiscal stances (i.e. expansionary in the US, neutral at best in the UK). If anything with uncertainty related to Brexit, monetary policy should tolerate inflationary pressure along with a more depreciated exchange rate. Achieving that required a change in the stance of monetary policy.