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 for free

  • 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

Bank of England warns of future rate uncertainty after vote to hold at 3.75%

Bank of England warns of future rate uncertainty after vote to hold at 3.75%

One vote to hike rates

Michael Nelson
clock 30 April 2026 • 2 min read
Navigating an uncertain environment: Applying a disciplined, data-driven approach

Navigating an uncertain environment: Applying a disciplined, data-driven approach

'​Looking ahead, the fundamental case remains constructive'

Fahad Hassan
clock 28 April 2026 • 2 min read
UK inflation rises to 3.3% in March as Iran conflict impacts fuel prices

UK inflation rises to 3.3% in March as Iran conflict impacts fuel prices

Motor fuel rose 4.7%

Michael Nelson
clock 22 April 2026 • 2 min read