FXStreet (Delhi) – Rhys Herbert, Senior Economist at Lloyds Bank, suggests that in today’s labour market data we forecast a return to employment growth, along with a pickup in annual earnings growth to above 3%.
Key Quotes
“In the UK, despite current low inflation rates, signs of a tightening labour market and of a gradual acceleration in wage growth highlight the risk of a build-up in domestic inflationary pressures.”
“The minutes of the October MPC meeting showed that any concerns members have about the labour market are having little immediate impact on monetary policy, due in part to signs of a pickup in productivity growth. Next month’s Inflation Report will need to take stock of a greater-than expected acceleration in cost pressure, and may see greater differences emerging between members’ views.”
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