- BOE should not tighten policy in response to effect of VAT hike on CPI
- His forecast is for headline CPI inflation to be well below target in 2 years time
- UK household consumption likely to decline in response to fiscal consolidation (BINGO!!)
- UK labour costs are declining, pushing down on inflation
Pretty much what you’d expect to hear from the dovish MrPosen. Man’s got his head screwed on.
