- Inflation and wage growth is also stronger
- I have concerns that the disinflationary process might be slowing
- BoE thinks underlying growth is weak, and the labour market is weakening
- There's uncertainty around forecasts
- Core inflation has gone sideways for the past year
- I think there is a concern particularly in the UK about inflation expectations
- Rates are probably still on a downward path but monetary policy is less restrictive
- There is a case for higher for longer rates and skipping a cut
There's been a refocus on inflation recently from the BoE members. That's what they should focus on given that they've been much above target for five years now and they also have consumer inflation expectations rising steadily.
