- Disinflation process in underway.
- Some slack opened up in the labour market.
- Risks to UK productivity are to the downside.
- FX rates could be disinflationary if the trend persists.
- On net, I think tariffs will be disinflationary for the UK, this was a factor in my rate decision.
After the US-China news, the policymakers will start to adjust their views and look at the more hawkish scenario.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
