BOE's Minouche Shafik speaks from Manchester 22 May 2015

  • Sees encouraging signs from labour and wage market data
  • Markets attach a low probability current weakness in inflation will prove permanent
  • Expects productivity to pick up over next 12 months as labour market tightens
  • Workers are not quite confident enough to demand the kinds of wage increases, thought recent wage data has been more encouraging
  • Domestically generated inflation such as unit wage costs remained stable while inflation fell
  • It's overly pessimistic to think that current headwinds are likely to last for decades

Nothing earth moving in her comments