1452 GMT - Despite talking up the potential for interest rate hike, the Bank of England is likely to stay on hold this year, Paul Dales at Capital Economics says in a note. The central bank reiterated Thursday that it stands ready to act if necessary, but the hiking bias doesn't seem to have shifted much. "In fact, Bailey, Breeden and Ramsden appeared less worried by the outlook for inflation," Dales says. For most members, upside risks to inflation from high energy prices, AI demand and El Nino weather effects are offset by greater signs of underlying disinflation, he notes. Capital Economics expects inflation to peak at 3.5% before falling to 2.0% by early 2028, while the BOE should cut interest rates to 3.00% next year.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.