Ex-MPC Member Blanchflower Calls Forecast an Illusion

The transcript discusses the inaccuracies in wage growth forecasts, highlighting the UK's employment decline and the unrealistic expectations of a smooth Brexit. It critiques the Bank of England's optimistic economic predictions and the potential tightening of monetary policy. The discussion emphasizes the risks to the downside, the limited ability to cut rates, and the challenges faced by the central bank in maintaining credibility. The future economic outlook remains uncertain, with concerns about interest rates and the lack of stimulus from the government.

What is the main concern regarding wage growth forecasts mentioned in the text?

How does the speaker perceive the predictions made by the Bank of England regarding the labor market?

What implications does the speaker draw from the potential economic conditions post-Brexit?

In what way does the speaker believe firms are reacting to the current economic climate?

What does the speaker suggest about the credibility of the Central Bank's forecasts?

How does the speaker view the relationship between real wages and consumer behavior?

What does the speaker imply about the future of interest rates and monetary policy?