European Central Bank chief economist Lane:
-
Sees staggered reset of prices and wages across the economy, a
process which is ongoing. - Dynamics of wages
and profits in the coming quarters still an open question - The transmission of
our monetary policy to broader financing conditions and the real
economy is firmly taking hold
If Lane is correct about the transmission process underway it argues for less pressure for further rate hikes from the Bank, should inflation and wages behave as desired (ie not spiral higher!)
Full text of his speech is here: