Boe says inflation could exceed 4% in the coming months
The Bank of England suggests it is worried about the outlook for additional inflation.
The UK Central Bank today predicts prices will exceed 4% in the coming months, but added that rising prices are not yet a priority as they will fall in 2022.
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The Monetary Policy Committee voted unanimously this month to keep that rate at 0.1%, adding that it is happy with the economy’s recovery from the pandemic.
However, the committee proposed that the fees would not be raised anytime soon.
Meanwhile, recent information on possible inflation said there had been “the case” that was “enhanced (The) case due to “a modest tightening of monetary policy.”
Hinesh Patel, portfolio manager at Quilter Investors, commented: They will repeat that temporarily, but it will definitely be of great interest. ”
“What’s ultimately flowing through the system is ‘bad inflation.’ This means that price increases are colliding with the most vulnerable households, along with the impact of Furlough on unemployment uncertainty. This uncertainty could follow the end of the Farlow scheme, consistent with structural changes in job market skill sets. ”
Patel does not believe that any of the issues can be resolved by monetary policy, so the BOE should be within the right to commence strengthening its stimulus policy. “Unfortunately, increasing wealth inequality risks further damage to social disparities,” he said.
“The ECB and the Federal Reserve have announced they are planning to start tapering and rewind financial support, so by not acting on the same timeline, the UK will further strengthen and inflation shocks. There is a risk of worsening and even worsening with higher imports. Price.”
