Free Trial

MNI BRIEF: BOE Ups Growth, Near-Term Inflation Forecast

LONDON (MNI)

The Bank of England raised its near-term inflation forecast and its assumption of how much of the UK's involuntary savings built up to the Covid-19 pandemic would be spent.

Inflation is now shown peaking at 2.5 percent in Q4 2021 before returning to hold close to target in the second and third years of the forecast, with the latter parts of the forecast not indicating any pressing need for a policy tightening.

The BOE also raised its assumption of the share of involuntary Covid related savings that would be spent to 10% from 5% -- a figure still far below that suggested recently by outgoing Chief Economist Andy Haldane.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.