Policymakers may have taken some heart from the latest data published by Indeed which suggests that wage growth has started to edge down. However, wage growth is still very strong and other measures also show that the labour market remains very tight so it will not alter the near-term outlook for monetary policy. We expect the ECB to raise its deposit rate to by 50bp to 2.0% next week and eventually lift it to a peak of 3.0%, which is above the level priced in by financial markets.
We will be discussing the decisions of the BoE, the Fed and the ECB in a Drop In on Thursday 15th December at 3pm GMT. (Register here.)
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