Recognising that explicit guidance in a rate tightening cycle is inherently fraught with risks, the MPC has also eschewed from providing any future guidance on the timing and level of the terminal rate. Growth concerns 10.
More generally, however, as the improvement in the labor market deepens and broadens, households should regain some of the confidence they lost during the recession, providing an important boost to spending. Broad contours of the outlook Nonetheless, a sharp rebound in economic activity – like those that often follow deep recessions – does not appear to be in the offing.