Deloitte comments on today's interest rate decision
Commenting on today’s interest rate decision from the Bank of England, Debapratim De, director of economic research at Deloitte, said:
“The Bank of England’s decision to cut rates was widely expected. But its upgrades to its inflation forecasts will come as a surprise to many. The Bank now expects inflation to peak at 3.7% in the second half of this year, up from earlier expectations of around 2.7%.
“With business surveys pointing to slower wage and employment growth this year, higher inflation implies greater risk of a premature end to this period of real wage rises. That could challenge the broad-based recovery in consumer spending that many economists, and the Office for Budget Responsibility, expect this year.”
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