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
BoJ to look through a temporary decline in monetary base
The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields.
Find Out More
Post
Global: Worried businesses see almost 50% chance of recession
Businesses continue to downgrade their expectations for the global economy, based on our latest survey of risk perceptions. On average, respondents judge there's a 47% probability of a global recession over the next 12 months.
Find Out More