EEF believes that two of the Bank’s stated fears, an escalation of earnings growth and firms pushing through significant price increases, have yet to materialise in any substantive fashion. With inflation easing back, the Bank can has
tim
e to wait and assess the impact of the three recent increases
EEF Chief Economist, Steve Radley, said:
“The MPC itself is clearly divided as to what the current smoke signals mean for the direction of inflation. With fears of escalating wage rises overblown and limited signs of cost increases being passed on to the final customer, the case for a further rise has yet to be made.”
ENDS