Pantheon Macroeconomics

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5th Nov 2015 03:45U.K., Economic Monitor

The improvement in the Markit/CIPS services PMI in October was pretty limp, supporting our view here that the recovery is shifting into a lower gear. What's more, the poor productivity performance implied by the latest PMIs indicates that wage growth will fuel inflation soon. As a result, the Monetary Policy Committee--MPC--won't be able to wait long next year before raising interest rates. Indeed, we expect the minutes of this month's meeting, released today, to show that one more member of the nine-person MPC has joined Ian McCafferty in voting to hike rates.

pmi productivity wages wage gains mpc rates growth gdp energy retail markit cips

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Keywords for: 5 Nov. 2015 More MPC Hawks Likely to Emerge Today, Despite Services Slowdown

pmi, productivity, wages, wage gains, mpc, rates, growth, gdp, energy, retail, markit, cips,