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Bailey says that CPI will see a "big drop" in April - but that's not new

BOE

To put those earlier Bailey headlines into context:

  • Bailey has said that thre will be a big drop expected in April inflation. However, that is nothing new... He is referring to the energy price cap which is due to see headline CPI fall due to gas/electricity price falls which came in at the beginning of this month.
  • He has also said that we are broadly where we thought we'd be - he is putting that in the context of the BOE's previous forecasts and the Bernanke review - noting that forecast errors of 0.1-0.2ppt are less than they have been over the past few years.
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