BOE’s Broadbent: Policy reaction to shocks likely to be delayed than in a perfect world

  • In the real world, there’s inevitably a degree of inaccuracy in economic
  • Currently, there’s a little more uncertainty
    than usual about the behaviour of unemployment
  • Official estimates of wage growth have
    been volatile
  • Other indicators have exhibited slightly lower rates
    of growth through much of this year
  • It takes time to understand the forces driving
    the economy, particularly services inflation and wage growth
  • It will probably require a
    more protracted and clearer decline in wage growth data before we can safely conclude
    that things are on a firmly downward trend
  • Full speech

That’s a really long and roundabout way of saying that “we still don’t see enough data to justify a policy pivot yet”.

This article was written by Justin Low at Source