Real pay rises not big enough yet for rate hike

While the dovish tone of the November Inflation Report suggested that the Monetary Policy Committee (MPC) is likely to keep Bank Rate on hold for a few more months, the case for starting the process of ‘normalising’ monetary policy looks set to gradually strengthen over the coming months as the recovery in real wages gathers pace.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.