Before turning to the focus of my remarks, I would like to begin with a few comments on the UK outlook. A snapshot suggests the UK economy is currently close to equilibrium, operating just below potential with inflation just above its target. Both headline and core inflation are around 2%, and domestic price pressures have been picking up notably. In particular, the labour market is tight. Growth in wages and unit wage costs have strengthened considerably as slack has been absorbed, with both now running at their highest rates in over a decade. The strength of the labour market is supporting consumer spending, which ... (full story)