Economists at Wells Fargo Securities........>

UK VIEW: Economists at Wells Fargo Securities expect UK CPI to "slowly recede

toward" the BoE's 2% inflation target "in the quarters ahead as the

price-lifting effects of sterling appreciation fade".

- Wells Fargo add that if the UK economy grows as expected, then "believe" the

MPC will hike rates again in Q3 2018. Further ahead Wells Fargo see two more

25bp rate hikes in 2019.

- "That said, the U.K. economic outlook is held hostage, at least in part, to

uncertainties associated with the Brexit negotiation process....But if these

uncertainties cause businesses to retrench via lower investment and/or cuts to

payrolls, the British economy could weaken further. In that event, prospects for

further monetary tightening in the United Kingdom would fade", conclude Wells

Fargo.