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mpc: 24 The Committee also noted several arguments for delay. First, CPI inflation was at present significantly below target and, on the central projection, would remain below it for most of the next two years. Second, although there were signs that price and unit labour cost increases earlier in the supply chain were edging up slowly, as yet they had had little impact on retail prices, and inflation expectations were well anchored to the inflation target. Third, there was a risk that potential supply might be higher than on the MPC's central projection. If so, inflationary pressures might be slower to emerge. But the Committee did not find these arguments persuasive, as it was important that policy should be, and be seen to be, forward-looking, reacting to the prospective pressure of demand on supply capacity and the inflationary pressure associated with it, not simply to the current inflation rate. Also, the Committee had judged that, overall, the risks to the central projection for inflation were broadly balanced.