European Central Bank chief economist Lane:

  • Sees staggered reset of prices and wages across the economy, a process which is ongoing.
  • Dynamics of wages and profits in the coming quarters still an open question
  • The transmission of our monetary policy to broader financing conditions and the real economy is firmly taking hold

If Lane is correct about the transmission process underway it argues for less pressure for further rate hikes from the Bank, should inflation and wages behave as desired (ie not spiral higher!)

ECB Lane

Full text of his speech is here: