Haldane warns expectations could drag down wages
Lower inflation expectations could make low inflation more persistent
Inflation expectations in the UK have taken a hit in recent months, which could feed into stronger downward pressure on prices than previously thought, the Bank of England's (BoE) chief economist, Andrew Haldane, said today.
Lower expectations may result from a number of factors, including greater slack in the economy, doubt over policy-makers' ability to boost inflation, the belief that low prices will persist for a long time, or divergence in monetary policy worldwide, which is pushing
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