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News Release

London

JLL's Head of UK Research comments on the Bank of England's inflation report


Commenting on today’s inflation report from the Bank of England, Jon Neale, Head of UK Research JLL, commented:   “Amid all the talk of a strong recovery, it is worth noting that real wages are stubbornly flat, productivity is still a major issue, and the recovery is increasingly dependent on the services sector. The Bank will want to see a more robust position before a base rate change, and that will not be clear until later this year or early 2015. Mark Carney’s statement that even if spare capacity was reduced rates would remain relatively unchanged due to global ‘headwinds’,  highlights that even when the signals improve the Bank will remain cautious.  However, he also acknowledged that there was a wide range of views within the MPC  on where the UK economy actually is, which will mean continued speculation for the rest of the year on when base rates will increase.”