BoE set to hold off on hikes as it predicts sub-1% inflation

clock

Bank of England policymakers expect inflation to fall below 1% over the next six months, according to the latest quarterly Inflation Report.

Governor Mark Carney said it is "likely" he will have to write an open letter to Chancellor George Osborne on account of inflation falling below this level in next six months. It follows UK CPI inflation falling to five-year low of 1.2% in September. Acknowledging the near-term outlook for inflation is "materially lower" than expected in the previous report in August, Carney predicted a return to the 2% target by the very end of the forecast period.  Falling commodity prices, the depreciation of sterling and the weakness of the UK's main trading partners have all affected inflation...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

The bonds were bought as part of the Bank’s financial stability mandate to reduce the danger of "fire-sale" dynamics.

BoE starts sales of bonds bought during emergency gilt operation

Sales based on market demand to avoid hurting markets

Valeria Martinez
clock 29 November 2022 • 1 min read
BoE's Ramsden: Autumn Statement not enough to stop rate hikes

BoE's Ramsden: Autumn Statement not enough to stop rate hikes

Ramsden made it clear that another large hike was his preferred option

Elliot Gulliver-Needham
clock 25 November 2022 • 2 min read
Government U-turns on 'call in' power due to be included in FSM Bill

Government U-turns on 'call in' power due to be included in FSM Bill

'Committed to the operational independence' of the regulators

Laura Miller
clock 24 November 2022 • 1 min read