""The latest data leave little doubt that the labour market is cooling faster than expected. Inflation is subdued, wage growth is softening, and confidence is ebbing. A December rate cut now looks not just possible, but necessary," said, Nigel Green."
""The Bank has achieved its goal of bringing inflation under control. Consumer prices have stabilised below 4% since summer, and core inflation continues to moderate. At the same time, retail sales, business investment, and hiring momentum are all slowing. That is the clearest signal yet that restrictive policy is biting hard.""
""The internal split shows how far sentiment has shifted inside the MPC," he says. "It's no longer a debate about whether to ease, it's about timing. We believe that a December move would be a logical and well-judged step in line with the evidence.""
UK unemployment rose to 5% in the three months to September, while employment fell for a second consecutive month. Ten-year gilt yields dropped to around 4.4% and sterling weakened against the dollar and euro as markets priced in expectations of a policy shift. The labour market is cooling faster than expected, inflation is subdued, wage growth is softening, and consumer confidence is ebbing. Consumer prices have stabilised below 4% since summer and core inflation continues to moderate. Retail sales, business investment and hiring momentum are slowing. The Bank of England narrowly held rates at 4% in November with four MPC members pushing for an immediate reduction, making a December cut appear logical.
Read at London Business News | Londonlovesbusiness.com
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