The upside surprises in core and headline inflation in May reduce the chance of the Bank cutting interest rates in the next few months. But we expect core inflation to drift back down in the second half of the year and, if GDP growth drops back as we expect, the Bank is likely to loosen policy by the end of 2019.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services