Minor uplift for wages doesn’t curtail Inflation trajectory
A slight uplift in wages this morning will do little to curtail Inflation woes which now sit at a five and a half year high, mounting pressure on Governor Carney day-by-day.
With a relatively healthy headline Unemployment rate at 4.3%, investors are understandably concerned about the widening gap between the 3% Inflation levels and 2.2% wage growth. The uplift will be little relief for the Bank of England, as only yesterday Mr Carney once again conceded a weak Pound and growing Inflation as a need to look at interest rates soon. Whilst many failed to believe Carney’s change in rhetoric last month, markets can’t avoid the facts around growing Inflation levels and thus it seems within the coming months the UK will be looking at rates back up to 0.5%.
Alex Lydall quoted in Pound Sterling Live