BoE's Broadbent: It is possible that weak growth in pay in the UK could continue - Jackson hole symposium
- Notes that goals for financial stability do not conflict with goals for inflation and growth
- Have no intention of raising interest rates until the UK can see strong wage growth, wage growth not expected to pick up any time soon despite skills shortages
- MPC less confident about any forecast of productivity growth over the next few years and meant that output data are no longer sufficient statistics for inflationary pressure
- Employment has grown significantly faster and nominal pay growth has been much weaker that wed expected: during the first half of 2014, annual growth in average earnings has been around four standard deviations lower than one would have expected, given the level of unemployment and the Phillips-curve relationship between the two during the first twenty years of inflation targeting