- 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.
This article was written by Adam Button at www.forexlive.com. Source