We think UK core inflation will ease to 2% by the end of 2024 as the effects of the rises in interest rates are felt. But the UK’s more persistent labour supply shortfall than elsewhere suggests this disinflationary process is likely to take longer in the UK than in the US and the euro-zone. That’s why we think the Bank of England will be the last of the major central banks to halt hiking and one of the last to cut rates.
Note: Join our special online briefing after the Fed and ECB’s July decisions, and previewing the BoE’s August meeting, at 10:00 EDT/15:00 BST on Thursday, 27th July. Register here.
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