BOE's Bailey Says the Fall in Inflation Will Continue

The transcript discusses the impact of a significant trade shock on national real income, leading to distributional questions and affecting wage bargaining. It highlights the current policy setting and the movement of economic indicators, suggesting a continued decline in inflation by the year's end. The discussion also covers wage expectations, noting a recent surprise in wage marking trends and the importance of inflation expectations in shaping policy decisions.

What does the speaker suggest about the expectations of wage settlements for the next year?

Why is the downward path of inflation expectations important for policy decisions?