- UK inflation remains persistently persistent and the outlook for growth remains modest
- I have argued that policy needed to remain restrictive for longer to squeeze out inflation persistence and rein in expectations drift
- To create an environment conducive to growth, monetary policy must remain restrictive for longer
- UK’s consumption gap is an outlier relative to its closest international peers
- The evidence from consumer behaviour is that we are not there yet on inflation expectations
This article was written by Giuseppe Dellamotta at investinglive.com.