UK Economy: Hot Wage Data Adds to BOE Caution on Rates Cuts

The video discusses unexpected wage growth data and its implications for the Bank of England's forecasts. It explores labor market dynamics, highlighting the cooling of the market and its insufficient impact on wage growth. The video also covers inflation expectations, driven by base effects and energy prices, and the potential impact of rising National Insurance on prices and jobs.

What was the unexpected element in the recent wage growth data?

• It showed no change.

• It was higher than expected.

• It was in line with forecasts.

• It was lower than expected.

What is the current trend in the UK labor market post-pandemic?

• Cooling phase

• Extreme tightness

• Increasing tightness

• Rapid growth

What is the expected year-on-year inflation rate change according to the transcript?

• From 2.6% to 3.0%

• From 2.6% to 2.3%

• From 2.3% to 2.6%

• From 2.3% to 2.0%

How does wage growth affect services prices according to the discussion?

• It has no effect.

• It affects them minimally.

• It affects them significantly.

• It reduces them.

What is one potential response of firms to the rise in National Insurance?

• Increase wages

• Cut prices

• Hire more employees

• Increase prices