• We are already at high level of monetary policy restrictiveness
  • medium-term inflation pressures are easing.
  • Food prices are taking up, but not seeing the same rise in import costs as before.
  • UK consumption is unusually week in Europe given high savings rate.
  • Consumption spending is not a driver of growth in Britain, unlike US or euros down.
  • Levels of capacity utilization in UK also .2 week demand rather than supply problems.
Source: Forex Live