BoE tightens by 50bp as inflation set for sharp fall
Forecasts imply Brexit, pandemic and energy prices will cause long period of weak productivity
The Bank of England raised its policy rate 50 basis points to 4% today (February 2), despite publishing forecasts predicting below-target inflation as soon as 2024.
Seven members of the monetary policy committee supported the rate increase and two voted to hold. MPC members also dropped a hint that rates may have hit their peak.
Today’s new forecasts by the BoE are more optimistic on growth than the previous forecast round, in November. Even so, the forecasts imply it could take until 2026 for
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
South Africa makes 25bp cut
Central bank stays cautious but continues easing cycle amid slowing inflation
Turkey holds rates at 50% for eighth consecutive month
Analyst says central bank’s cautious positivity about disinflation points to December cut
UK inflation could stay closer to 2% than forecast – BoE deputy
Dave Ramsden presents evidence that disinflation could continue its recent trend
Iceland cuts rates by 50bp
Inflation continues to decelerate but GDP growth is revised down
Hungary holds rates again
MNB remains hopeful about 2025 as economy slides into recession
Bank Indonesia holds rates as rupiah weakens
Bank says inflationary policies under Trump would boost dollar and lead to fewer Fed rate cuts
Central banks to maintain independence despite threats – panel
Top central bankers discuss Trump, AI and why they plan to ignore IMF on rate cuts
More volatility calls for greater agility – Schnabel
ECB official says new tools, including negative rates, may be needed in more disruptive age