The big headache for the BoE is balancing the need to keep inflation under control without stifling the recovery through rate hikes – the labour shortage is likely to make the UK have to take a more proactive approach than most of the G7.
Although when they’ll finally hike is anyone’s guess – a lot of credibility was lost last month when Bailey sat back and watched markets price a hike in, only to do nothing…again.
I suspect a stronger pound would be better for the short term though.
All GDP numbers ought to be interpreted relative to 2019 Q4 GDP. You really can’t make any conclusions on how well things are going otherwise.
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The big headache for the BoE is balancing the need to keep inflation under control without stifling the recovery through rate hikes – the labour shortage is likely to make the UK have to take a more proactive approach than most of the G7.
Although when they’ll finally hike is anyone’s guess – a lot of credibility was lost last month when Bailey sat back and watched markets price a hike in, only to do nothing…again.
I suspect a stronger pound would be better for the short term though.
All GDP numbers ought to be interpreted relative to 2019 Q4 GDP. You really can’t make any conclusions on how well things are going otherwise.