Home Business UK inflation forecasts highest since 2008 ahead of BoE interest rate decision – Thaifrx.com

UK inflation forecasts highest since 2008 ahead of BoE interest rate decision – Thaifrx.com

by news dir

© Reuters FILE PHOTO: Courgettes are sold at a vegetable market in London, Britain February 3, 2017. REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) – British public expectations for next year’s inflation soared to their highest level since 2008 this month, Citi Bank said on Tuesday, something the Bank of England will observe as it decides. whether to raise interest rates next week or not

Citi said its inflation forecast for the next 12 months rose to 4.4 percent in October from 4.1 percent in September. Based on monthly surveys with YouGov conducted Oct. 21 and 22.

But inflation forecasts for the next five to 10 years fell to 3.7% from 3.8% in September.

Inflation in many countries is increasing. As the global economy reopens from the coronavirus shutdown

BoE chief economist Huw Pill said last week he thought UK consumer price inflation could be above 5%, doubling the BoE’s 2% target before retreating.

Economists at Citi said the BoE considers a variety of indicators when assessing the risks of inflation expectations. And reading the poll on Tuesday itself is unlikely to increase the pressure for a short-term interest rate hike.

“However It’s unlikely to cause a big dovish assessment either. Especially with the measures of the financial markets that have continued to increase,” they said.

Investors are raising interest rates by the BoE on Nov. 4, which will bring the bank interest rates to 0.25% from the current all-time low of 0.1%. Most economists polled by Reuters think the BoE will. Wait until early 2022 before moving. [ECILT/GB]

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