16 Feb 2015
Wages started to pick up in UK – BTMU
FXStreet (Edinburgh) - According to Derek Halpenny, European Head of GMR at BTMU, the growth in wages in the UK economy will be more evident in the coming periods.
Key Quotes
“Now the BOE estimate the gap as being about 0.5% of GDP, down from 1.0% in the last report.This gap was expected to be eliminated over the next year and a half”.
“However, given the cut from the last meeting, we could easily see this gap being eliminated far more quickly than expected.
“Governor Carney stated that the UK was “at the start of the turn in wages” indicating increased optimism that wage growth is now picking up”.
“Governor Carney also played down deflation risks pointing out that about 68% of the CPI basket were still recording price rises, which is about normal underlining the fact the overall drop in annual CPI is more a reflection of the degree of price decline rather than the price decline being broad-based”.
Key Quotes
“Now the BOE estimate the gap as being about 0.5% of GDP, down from 1.0% in the last report.This gap was expected to be eliminated over the next year and a half”.
“However, given the cut from the last meeting, we could easily see this gap being eliminated far more quickly than expected.
“Governor Carney stated that the UK was “at the start of the turn in wages” indicating increased optimism that wage growth is now picking up”.
“Governor Carney also played down deflation risks pointing out that about 68% of the CPI basket were still recording price rises, which is about normal underlining the fact the overall drop in annual CPI is more a reflection of the degree of price decline rather than the price decline being broad-based”.