UK | MPC predicts larger but still brief inflation burst
The MPC now thinks CPI inflation could exceed 3% this year, with the risk of an even bigger overshoot of the BoE’s 2% target. However, the majority on the committee maintained the view that higher inflation will be transitory.
What you will learn:
- In his final meeting, Andrew Haldane voted again to scale QE back by £50bn.
- Other opinions on how to judge whether inflationary pressures were temporary or persistent differed. But while the MPC will likely cut the pace of QE further in August, the chances of a more abrupt move in policy are low.
- The outcome of June’s MPC meeting repeated that of the previous month.
Tags:
Related Services

Post
Latin America Key Themes 2024 – Slower growth, but it’s not all bad news
Growth in most LatAm economies will be below consensus. Economic momentum has surprised to the upside through most of 2023, but the full effects of record global and domestic monetary tightening are yet to be seen.
Find Out More
Post
Easing financial conditions offer CRE some respite
Our measure of financial conditions has become less restrictive in the US and started to loosen in the eurozone and the UK, reflecting investors' expectations that interest rates have peaked. This should aid the outlook for commercial real estate (CRE) on the margins, although the scale of past rate hikes, sluggish economies, and structural headwinds mean the sector still confronts challenging fundamentals.
Find Out More