BOE's Cunliffe: We can see inflation pressures coming from UK labour market
Says that the challenge for the UK is weak domestic inflation
- The question is how much of weak UK domestic inflation is cyclical vs structural
- Expects domestic cost pressures to feed through into inflation
- That should push inflation slightly above target
- BOE forecasts show domestic inflation picking up
The good news for the pound is that this doesn't sound like someone who is anywhere close to jumping towards the rate cut camp at the moment.