UK inflation predicted to drop close to Bank of England’s 2% target
7 months ago

UK inflation predicted to drop close to Bank of England’s 2% target

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} UK inflation could get close to the Bank of England’s target of 2 per cent when the latest figures are released by the Office for National Statistics on Wednesday. The Consumer Prices Index dropped to 3.2 per cent for March, compared with the previous year, and forecasters polled by Reuters think inflation will drop to 2.1 per cent for April. We think inflation will fall further, perhaps even to 1.0% later this year.” The expected lower figures to be released on Wednesday will put further pressure on the Bank of England to cut interest rates from their 16-year-high of 5.25 per cent. He added: “Whatever the priors of its individual members the MPC will continue to learn from the incoming data and, if things continue to evolve with its forecasts – forecasts that suggest policy will have to become less restrictive at some point – then it’s possible the bank rate could be cut some time over the summer.” Earlier this month, Mr Broadbent was among those to vote for interest rates to remain at 5.25 per cent, with a 7-2 vote in favour of no change.

History of this topic

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