BOE's Broadbent: Policy reaction to shocks likely to be delayed than in a perfect world

<ul><li>In the real world, there’s inevitably a degree of inaccuracy in economic
measurement</li><li>Currently, there’s a little more uncertainty
than usual about the behaviour of unemployment</li><li>Official estimates of wage growth have
been volatile</li><li>Other indicators have exhibited slightly lower rates
of growth through much of this year</li><li>It takes time to understand the forces driving
the economy, particularly services inflation and wage growth</li><li>It will probably require a
more protracted and clearer decline in wage growth data before we can safely conclude
that things are on a firmly downward trend</li><li><a href="https://www.bankofengland.co.uk/-/media/boe/files/speech/2023/december/signal-versus-noise-speech-by-ben-broadbent.pdf" target="_blank" rel="nofollow">Full speech</a></li></ul><p>That's a really long and roundabout way of saying that "we still don't see enough data to justify a policy pivot yet".</p>

This article was written by Justin Low at www.forexlive.com.