MPC hawk on the wires with text of a prepared speech to Institute of Directors in Liverpool
- BOE estimate of slack skewed to downside
- surveys point to GDP growth rates of +0.6 – +0.7%
- inflation expectations well anchored, wages turning higher
- wage pressures could emerge in near future
No danger of that last one any time soon mate
- more likely than not that inflation will fall below 1%
- gradualism requires interest rate rises sooner rather than later
- little sign of disinflationary second-round effect
- BOE policy should look through inflation slowdown
Nothing we didn’t already know from one of the two MPC hawks
GBPUSD 1.5685 still
Full speech here
McCafferty – Not slacking in his hawkish calls
