The BOE’s Shafik is a bit of a mystery on the MPC after just 3 meetings but she has opened up to the Financial Times in an interview just published:
“If you look at what we would expect to see at this point in the recovery, the increases in wages that we have seen have not been significant,” Ms Shafik said in an interview with the Financial Times.
“We would need to see more of the data pointing in the same direction in terms of price pressures – particularly in terms of wages and unit labour costs. In terms of sustained domestic inflationary pressures, that’s going to be the ultimate test,” Ms Shafik said.
She’s dovish and that’s a significant development and another reason cable could slide although it’s not having any impact so far. Last at 1.6124.
