7
Bank of England may cut interest rate sooner after surprise inflation forecast
(www.theguardian.com)
This is the best summary I could come up with:
The Oxford Economics consultancy and analysts at Investec and Deutsche Bank have reassessed their outlook for inflation in 2024 and concluded that the consumer prices index (CPI), which dropped to 3.9% in November last year, will fall below 2% within four months.
The independent forecasters said a fresh review next month by officials at the Bank’s headquarters on Threadneedle Street was likely to follow their lead and predict a much lower path for inflation this year.
Bailey refused to comment on the outlook for monetary policy, but said: “Let’s just take the market for a moment – obviously that is feeding through into mortgage costs and I hope that is something that continues.”
Andrew Goodwin, chief UK economist at the consultancy Oxford Economics, said he expected the CPI to average 2.1% in 2024, down from a forecast in November of 3.1%.
Phil Shaw, senior UK economist at Investec, said the impact of tax cuts by the chancellor in the autumn statement, which he believed would raise consumer spending and persuade the BoE to keep interest rates high, was less than expected.
Raja added: “The recent disruption in global supply chains may also arrest the disinflationary momentum we’re seeing in goods and food prices.
The original article contains 654 words, the summary contains 203 words. Saved 69%. I'm a bot and I'm open source!