BoE’s Cunliffe says odd behaviour of labour supply demands caution
Deputy points to 'shift in psychology' of workers
The Bank of England should hold fire on rate rises as there is cause to suspect wages will stay low for a while, deputy governor Jon Cunliffe said yesterday.
Cunliffe focused on the puzzle that falling unemployment has failed to feed higher wage growth in the UK during a speech to the Cambridge Society for Economic Pluralism. He called this a "big surprise" for the monetary policy committee.
Cunliffe outlined a few possible causes. One is simply that wage rises are lagging behind unemployment
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