BOE: Breeden: Accumulating evidence latest shock is demand-driven
Jan-09 16:59
- Breeden asked where she sits regarding the 3 cases.
Says the 3 cases are useful. The third scenario of persistence, feel the probability has materially fallen. Don't attach a zero probability - pressures from higher wages previous high prices having passed through.
Case 1 vs case 2 - goes back to Q on shocks as activity weakens. The answer to that question frames how she looks as case 1 vs case 2. Accumulating evidence that it could be demand but will have to see. - MNI comment: That last answer seems to point a bit more towards case 1 than her speech had suggested.
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