- Latest inflation data is good news
- But there are reasons to worry about inflation persistence
- We might need to stay restrictive for longer
- UK wage growth is still incredibly high
- Need to see how UK activity is holding up before next rate vote
Given that there is still some ways before inflation gets towards the 2% target, we shouldn’t expect policymakers to change their language any time soon.
This article was written by Justin Low at www.forexlive.com. Source