We have to watch very carefully for consequences of inflation.Labour market is softening.Path of interest rates will continue to be gradually downwards.A major change is needed for upturn in productivity.Next big tech change should help productivity.We’ve seen a steepening of the long term bond yield curve.I don’t think there’s anything unusual about the UK in terms of the yield curve.There will be no sustained growth without stable low inflation.I don’t believe that QT is causing steepening of the yield curve.Yield curve steepening partly as a responce to high level of uncertainty in global economy.I don’t think investors are concerned about viability of UK debt stock.Internationally there is an increase in uncertainty.Increase in uncertainty is coming through in terms of economic activity and growth.Businesses tell me they are putting off investment decisions.
There’s nothing new here from Bailey as he just reaffirms the gradual easing with a keen eye on inflation persistence.
This article was written by Giuseppe Dellamotta at www.forexlive.com.