Deloitte comments on today's Bank of England interest rate decision
Commenting on today’s Bank of England interest rate decision, Ian Stewart, chief economist at Deloitte, said:
“The Middle East conflict has re-written the profile for inflation and made it all but inevitable that the Bank would keep rates on hold. The Bank underestimated the inflationary effects of the last energy shock, in 2022, and will be determined to avoid a repeat.
“In contrast to 2022, growth is sluggish today and unemployment is rising. Higher energy prices could have only a transient impact on inflation and, by squeezing spending power, generate a sharp slowdown in activity. The Bank has a difficult task ahead in weighing the inflationary effects of high energy prices against the dampening impact on growth.”
ENDS
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