BoE inflation report hearings

The Bank of England (BoE) inflation report hearings can be watched here. Unfortunately I can`t seem to get the link to work due to my internet connection so I`ll just have to rely on the reports by Ian McCafferty, an external member of the monetary policy committee and Jon Cunliffe, Deputy Governor for financial stability.

In the first report, it is highlighted that the economy has grown by 3% and the unemployment rate has fallen below the 7% target to 6%. However, inflation has fallen more sharply than expected "from over 3%, below our target of 2%." The rate of productivity growth and spare capacity is difficult to estimate.

For the second report by the Deputy Governor of the BoE, the monetary policy committee (MPC) will not tighten policies until there is a significant reduction in spare capacity. Other issues include the nominal pay growth.