Deloitte comments on today's Bank of England interest rate decision
Commenting on today’s Bank of England interest rate decision, Debapratim De, chief economist at Deloitte UK, said:
“Inflation has come in below what many forecasters had feared at the onset of the Iran war. With households' inflation expectations now down, close to levels seen before the conflict, and signs of continued labour market easing, the Bank has chosen to keep rates on hold.
“But the full economic impact of this war is far from realised. We expect inflation to accelerate over the summer and autumn, eclipsing wage growth for the first time in more than three years. Navigating that will require a careful balancing act by the Bank – rising inflation will encourage tighter monetary policy while declining real wages support keeping rates on hold.”
ENDS
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