BoE's Mann
- Latest GDP data confirms my view that H2 would be a soft patch
- UK unemployment rate is 'pretty low', market continues to be tight, which is reflected in wage data
- Will get another data print on inflation and look at that before deciding next move
- Wage growth is slowing but pace remains challenging
- Goods inflation has slowed dramatically
- Services prices are stickier in the UK than in the US or eurozone
- There is a lot of inertia in all the components that drive services inflation
- Firms in UK have strong pricing power across a range of services categories, may want to rebuild profit margins
The market doesn't care about comments from Mann.