The USD is mostly lower vs the major currencies with the the USDJPY (-0.30% USD), AUD (-0.35%) and the NZD (-0.76%) leading the way. Instead, policymakers said the appropriate policy response will depend on how large and persistent the shock proves to be. While officials warned that the risks to inflation are tilted to the upside—particularly if elevated energy prices lead to broader wage and price pressures—they noted there is currently little evidence of meaningful second-round inflation effects. They believed that a proactive increase in Bank Rate would reduce the probability of second-round effects setting in. Further, research found that setting policy as if there were stronger second-round effects and course correcting if needed, would prove to be less costly than vice versa."