BoE MPC member Jonathan Haskel highlighted in a speech that assuming no further shocks, inflation will depend on the “interaction of a tight labour market and second-round effects as previous inflation works its way through the wage-price system.”
Haskel emphasized that the MPC is closely monitoring labor market conditions and underlying inflationary indicators, particularly services inflation.
He expressed concerns about the current state of the labor market, stating, “The labour market continues to be tight, and I worry it is still impaired. I would rather hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably.”
