BoE's Taylor says we will be close to CPI target sustainably, weaker forecasts in terms of output gap and joblessness
Importance
Level 1
- CPI has been slightly concerning in recent months.
- Services CPI has not fallen as quickly or as far as hoped.
- Looking for services inflation to normalise along with wage growth this year.
- Expect services CPI to normalise along with pay.
- More reassured that we are proceeding towards inflation normalisation at a reasonable pace.
- Jobs forecasts are converging on a pessimistic outlook.
- Sees risk of inflation undershooting.
- Are approaching the neutral level, but not there yet.
- There are 2-3 more cuts until neutral.
- Youth Unemployment rise is mostly cyclical.
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