BoE deputy signals more hikes in ‘low-hire, low-fire’ dynamic

The Bank of England’s deputy governor for monetary policy has said she is “sceptical” about the level of slack in the UK economy, after highlighting how headline unemployment figures masked young people’s work struggles.

The BoE’s current central forecast shows slack – when there is less demand than supply – to be around 1%. However, speaking today (November 10) at the BoE Watchers conference in London, Clare Lombardelli said she believed the figure was actually 0–1% because of the “rigidities”