BoE’s Forbes: Risk of Pickup in Wage Growth

Bank of England policy maker Kristin Forbes said the pound’s downward pressure on U.K. inflation may start fading and there’s a risk of a pickup in wage growth.

Forbes, a former White House adviser, made the comments in her first speech since joining the BOE in July. While she has voted to keep the key interest rate at a record-low 0.5 percent, her remarks chime with the view of the minority on the nine-member Monetary Policy Committee, who are pushing to tighten policy to ensure inflation remains under control.

With the U.K. poised for the fastest growth in the Group of Seven this year, the debate on when to lift interest rates is intensifying. The pound’s 7 percent appreciation in the past year has helped keep consumer-price growth below the BOE’s 2 percent target, adding weight to the case for maintaining emergency stimulus for now.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.