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Dhingra says "less clear" what would make her change vote from 25bp cut to 50bp

BOE
  • Dhingra says on supply side there is "definite weakness" but doesn't think this all translates into something inflationary. She gives the example that labour force participation is a key constraint that caused wage inflation - don't really share that view. First as it would need to assume really high inelasticities. And don't see any real correlation between labour shortages and wage growth.
  • She says on the scarring effect. Some of it has unwound - but don't have many data points to base this on.
  • On productivity - it's been weak for some time, not just now.
  • Less clear on when to go from 25bp to 50bp cut. Would have to look at the data and what its doing for consumption.

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