- Spare capacity maybe as little as 0.33% of GDP, lies in range of 0.33% to 1.5% (BOE estimates 1-1.5% slack seen)
- UK labour market slack may be overstated
- Gradual rate increases may mean starting earlier
- May need to raise rates faster than markets anticipate
There we go again with the earlier rate hike talk and the market is numb to it now. Cable is 15 pips off the lows at 1.6948
