BoE dovish, seeing more labour market slack; wages a key focus in both UK and US

Posted on February 3rd, 2017

The Bank of England monetary policy reports were more dovish than expected.  While it significantly upgraded the growth outlook for 2017, it also revised up potential supply.  In particular, it lowered its projection of the equilibrium unemployment rate from around 5% to around 4.5%; forecasting stable wage growth in a modest 2 to 3% range […]