BOE's Minouche Shafik speaks from Manchester 22 May 2015
- Sees encouraging signs from labour and wage market data
- Markets attach a low probability current weakness in inflation will prove permanent
- Expects productivity to pick up over next 12 months as labour market tightens
- Workers are not quite confident enough to demand the kinds of wage increases, thought recent wage data has been more encouraging
- Domestically generated inflation such as unit wage costs remained stable while inflation fell
- It's overly pessimistic to think that current headwinds are likely to last for decades
Nothing earth moving in her comments
