• Wage growth, services inflation are twice the rate consistent with sustainable CPI
• But reasonably confident that wage growth will edge down further in coming months
• Expectation in wage growth fall is due to fall in headline inflation

Don’t expect to get much of a change to this narrative until we are right at the point where rate cuts are to present themselves. In the case of the BOE, it might only come around May.

This article was written by Justin Low at www.forexlive.com.