UK | Brighter outlook raises risks of an earlier rate lift-off
At May’s MPC meeting the committee revised up its forecast for GDP growth in 2021 significantly and laid out its plans to slow the pace of asset purchases. Andrew Haldane broke ranks by voting to cut the target for QE.
A tapering of QE had already been floated by the MPC, so we don’t attach much significance to the decision. But with the economy seen to be running hotter, and unemployment peaking lower, than previously expected, the risk that monetary policy will be tightened earlier than we anticipated has increased.
What you will learn:
- The BoE now expects GDP to regain pre-Covid levels by the end of this year
- Inflation is expected to rise above the 2% target, but only temporarily
- Andrew Haldane underlined some of his recent public warnings by voting to cut back on QE
Tags:
Related Services
Post
Relative return index signals improving CRE attractiveness
Our latest global relative return index (RRI) signals that risk-adjusted investment opportunities in commercial real estate (CRE) should start to emerge this year before becoming more widespread in 2025. At this point, our baseline expected returns move higher than required returns, pushing the global all-property index above the 50 mark.
Find Out More
Post
South Africa: Elections 2024 | ‘ANC & friends’ election scenario
This Research Briefing sets out the first of four scenarios for South Africa's general election on May 29. In this scenario, the ANC wins over 46% of the vote share at the national level, and forms a government by working with small, constituency-based parties.
Find Out More