Sterling really should be higher – and could indeed go higher – if central banks push forward a newfound trend of focussing on labour markets.
Central bankers are basing their decisions on the strength of the labour market more than inflation, argues a note by Bank of America Merril Lynch .
Recent hawkish rhetoric from central banks in England, Sweden, Norway, Canada and Japan, illustrates the point, as it has been driven largely by extremely low unemployment levels, with little regard given for the equally low inflation levels coexisting in many of these economies."G10 Central Banks have started ignoring […]
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