Dr. Ella Kavanagh:

I would be watching wages, to go back to that point. I would watch what is happening there and whether wages are increasing. At the moment, we have shortages in parts of the labour market. There is a lot of what we would call frictional unemployment. Whether it is due to that or not, there are many vacancies out there and wages are being driven up by that.

I would watch what was happening to wages. We should also determine whether higher inflation is becoming a feature of wage negotiations. In other words, have wage negotiations become more conscious of inflation? That is probably what I would be watching.