- Expected fall back in CPI rate likely to lag actual fall in inflationary pressures (swervin)
- Risks in both directions to CPI, if either risks materialise MPC would respond
- Differences of views on MPC about likely path of CPI in medium term
- Recovery unlikely to be smooth, will be ups and downs in quarterly growth rates
- Only time will tell how above target CPI will impact CPI expectations, difficult to judge
- No sign yet that wage inflation has picked up
- We never pre-announce a decision on rates, we haven’t made one
- Some people are running ahead of themselves by saying we are laying ground for hike
Well the sterling bulls didn’t get the hawkish prompts they wanted from Merve. Quite the opposite.
Bet that US investment bank that sold cable just ahead of the report’s release/King comments is happy. Damn they’re good.
