The International Monetary Fund (IMF) has warned the Bank of England against having to face “inaction bias” ahead of stronger-than-expected inflation, urging the bank to begin raising rates before inflation reaches a projected 5.5% in the spring.
According to the IMF's annual review of the economy, the country's recovery from the coronavirus pandemic has been far stronger than expected, despite the fact the new Omicron variant will likely cause a "mild slowdown" over the next quarter. The BoE's Monetary Policy Committee caused a stir last month when it decided to hold interest rates, despite warning markets that rates will have to rise before Christmas. Now, following the spread of the Omicron variant, the bank is expected to hold interest rates once more during its MPC meeting this Thursday (16 December). Andrew Bailey: MPC r...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
