Helped in part by the decline in energy prices, this week we have become more confident that the recent loosening in the labour market will eventually reduce domestic price pressures. As a result, we have revised down our forecast for Bank Rate and now expect the Bank of England to cut interest rates all the way to 3.00% next year, which is further than our previous forecast and investors’ expectations of 3.50%.
Next week, we’ll be discussing how the government has influenced the UK economy in its first year in office. Register for in-person Roundtables at our London office on Tuesday 1st July here. Alternatively, register for an online briefing on Thursday 3rd July 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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services