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BOE Says Slack Has Fallen as Carney Puts Focus on Weak Wages
The Bank of England said the amount of spare capacity in the economy has fallen as it lowered its forecast for wage growth and said it will put more weight on earnings in its policy assessment. In their Inflation Report published in London today, policy makers led by Governor Mark Carney said the amount of slack in the economy is in the region of 1 percent of gross domestic product. That compares with a previous estimate that put the mid-point at 1.25 percent. While the BOE said slack is being absorbed faster than previously anticipated, it said the pace of erosion will slow, which “should curb the buildup of ... (full story)