BOE's Pill: Services and wages continue to point to uncomfortable strength in inflation

• When-rather-than-if characterization of prospective rate cuts seems appropriate
• The challenge for the MPC is to get the balance right
• We have to be realistic about how much any one or two economic releases adds to our assessment
• Services price inflation and wage growth continue to point to an uncomfortable strength in underlying inflation
• Hard to dispute the case that inflation persistence in the UK continues to prove persistent

The pound is higher on these comments.