- Labour market tightness continues to impart inflation pressures
- This will need higher rates for longer to get inflation sustainably to target
- Current outlook does not suggest scope for moderation in rates any time soon
- This is why I have been voting for higher rates at recent meetings
- At current rate of change, it would take at least a year to fall back to average pre-pandemic tightness
- Rates will have to be held higher and longer than many seem to be expecting
The BOE hawk is out with some hawkish comments.
