Part 6/9:
Despite ongoing issues, the Bank's official projections suggested a hoped-for pick-up in growth later in the year. However, this optimism has proven overly ambitious. The labor market data tells a different story; job losses are mounting, with unemployment on the rise. The Bank's previous assertion that the labor market was balanced has been widely criticized as unrealistic.
According to recent forecasts, the unemployment rate is expected to rise beyond 4.5%, contrary to earlier predictions. The recurrent downgrading of expectations highlights a retreat from the belief that economic conditions will improve with interests rates alone.