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5min chapter
UK wages push Gilts-Bund spread to historic levels
NAB Morning Call
Economic Divergence: Canada vs UK
This chapter examines the contrasting monetary policies of Canada and the UK amid recent economic data, focusing on UK wage growth and its implications on the Bank of England's interest rate decisions. It also explores the reactions in bond markets, particularly the significant rise in the Gilts-Bund spread, and reflects on the cautious optimism related to potential interest rate cuts amidst weak economic conditions in Europe.
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