The economy is now estimated to have shrunk by 0.5% q/q in Q2. But the labour market delivered better news - employment rose strongly in the second quarter. However, inflation ticked up in July, and fresh rises in domestic energy prices mean that the upside risks to our inflation forecasts have increased. Even so, we think monetary policy will be loosened further at November’s MPC meeting.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.