BANK OF ENGLAND CHIEF ECONOMIST ON INFLATION AND NEUTRAL RATE
BANK OF ENGLAND CHIEF ECONOMIST ON INFLATION AND NEUTRAL RATE
Work remains on addressing underlying inflation in the UK.
Labour market data shows wages are still elevated.
Bank of England likely to take a gradual approach to rate cuts.
External economic shocks could derail the UK’s path to low inflation.
UK’s quarter-on-quarter growth of 0.3% is close to trend levels.
Adjusting to neutral rates is not yet a priority for the Bank of England.
While not the base case, higher neutral rates are under consideration.
Markets are increasingly factoring in the possibility of higher neutral rates in the UK.
