Rising inflation expectations adding to the BoE’s nerves

The recent rises in households’ inflation expectations will be making the Bank of England more nervous about the outlook for inflation. This feeds into our new forecast that the Bank will keep interest rates at 4.00% for the rest of this year before a more decisive fading of inflation concerns prompts rates to be cut to 3.00% next year.

We’ll be discussing the outlook for Bank of England, Fed and ECB policy in an online Drop-In at 3pm on 18th September. (Register here.)