Pantheon Macroeconomics

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30th May 2022 18:00U.K., Daily Monitor

The labour market currently is very tight, largely due to a sharp decline in the size of the workforce.

We think, however, that around half of that decline will reverse by end-2023, keeping a lid on wage pressures.

This is one reason why we think the MPC will hike Bank Rate by less than markets expect.

cpi cpi inflation e.u. January labour labour market May mpc nhs q1 q2 q4 savings sterling wage growth wages

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Keywords for: A Rebound in the Workforce will Help to Contain Wage Growth

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