Bank of America has predicted the Bank of England will not be able to cut interest rates until after 2024.
In a research note today (1 September), UK economist Robert Wood said the UK has an "entrenched inflation problem", which has been caused by four supply shocks: energy prices, supply chains, Brexit and workforce sickness. The weak supply has bled into the UK's growth prospects, as there has been no actual growth since 2019, leading to a strong domestic inflationary pressure. Wood explained inflation pressure is now "entrenched to a degree, as the structural economic changes combined with high inflation have modestly deanchored inflation expectations". Huw Pill: BoE must 'see the jo...
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