Carney speaks about the issues faced from energy prices and FX moves

  • BOE largely looks through energy price changes but FX changes are more complicated
  • Net impact of recent falls in energy prices is a boost to UK real incomes
  • Mon pol will not catch up to transitory factors that usually dissipate within a year
  • Key question is when should rates increase (please tell us Mr C)
  • Real incomes are still below pre-crisis levels
  • Will update on hours worked in Feb

Haldane

  • Doesn't know how long real rates will stay low

Forbes

  • UK labour market is quite tight
  • Wage pressures are not yet big enough to see inflation back to target
  • Those pressures are also not at a level to see rate rises
  • Wages rises have been different in various sectors
  • There's no clear indications that wages are being affected by different skill levels