- Possibility of meeting forward guidance threshold early not a trigger for raising rates
- Forwards guidance gives UK understanding, businesses understand it, without it markets would be worrying about rising interest rates
- Businesses understand that the MPC won’t undermine the recovery
- Wages will be determined by productivity, still plenty of slack to be taken up
- “There’s a lot of slack”
BOE’s Dale on wage inflation
- Previous private surveys have overstated wage rises
- Only when wages rises exceed productivity will it become a concern
- We will react if we see inflation expectations pick up
- Predicting unemployment levels with precision is difficult
