BOE's Bailey: Many indicators are signalling a fall in inflation, which will be marked

<ul><li>Wage bargaining has surprised to the upside</li><li>There has been a very large terms of trade shock in this country</li><li>Many indicators are signalling a fall in inflation, which will be marked by the end of this year</li><li>Question is: As headline inflation comes down, will we see inflation expectations continue to come down and will that impact wage bargaining?</li><li>There is not group think at the MPC at the moment</li></ul><p>Dhingra: </p><ul><li>Labour market continues to ease as MPC's hiking cycle takes effect with a lag</li><li>Pass-through of level changes to wages would not necessarily pose a risk to our target in the medium term</li><li>Not yet evidence to suggest firms will seek to increase their margins</li><li>Domestic factors are likely to continue to ease the pressure on CPI inflation</li></ul><p>The pound is lower on the initial comments from Bailey, falling to 1.2527 from 1.2553.</p>

This article was written by Adam Button at www.forexlive.com.