Onto households and wages
- Households have made tremendous progress but remain relatively indebted
- BOE watching for all risks to inflation
- BOE agents see some signs of lower inflation affecting wages
- National living wage likely to add 0.1 pp to wages and CPI
- The basic assumption is that inflation will pick up
- There may be shocks and the MPC would have to react
- BOE will be watching for effects of referendum
- We will watch risk premiums and effects on households and financial sector
- BOE is not yet seeing increased risk premium
- BOE won't speculate on outcomes of political events and forecast are based on status quo of politics
We're seem to be entering the drone zone with questions and responses
