BOE’s Pill: Services and wages continue to point to uncomfortable strength in inflation

• When-rather-than-if characterization of prospective rate cuts seems appropriate
• The challenge for the MPC is to get the balance right
• We have to be realistic about how much any one or two economic releases adds to our assessment
• Services price inflation and wage growth continue to point to an uncomfortable strength in underlying inflation
• Hard to dispute the case that inflation persistence in the UK continues to prove persistent

The pound is higher on these comments.

This article was written by Adam Button at www.forexlive.com.