The UK's recovery enters a critical phase

Strong job growth in the UK is a key indicator of economic strength but there are a number of headwinds that could get in the way of a sustained recovery.

The labour market in the UK continues to improve but wage growth remains subdued and inflation is at its lowest level since 2000. Recent developments have certainly shifted back expectations for a rate hike but, with oil and food prices so volatile, don’t be surprised if interest rate expectations shift wildly over the course of the year.


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