Bailey: BOE Sees Inflation Little Over 3.5% by Year End

Posted by MarketsWire

Bank of England Governor Andrew Bailey said inflation is expected to rise to “a little over 3.5% by the end of the year” as a direct consequence of the conflict in the Middle East. He was speaking during a press conference following the central bank’s decision to keep interest rates on hold with sev

2 replies

tomspark wrote:

That's wild — 3.5% is way higher than what they were predicting just a few months ago. Middle East escalation always hits energy prices first and inflation follows, but the BOE's basically admitting they can't do much about it without tanking the economy further.

tomspark wrote:

3.5% isn't terrible but that's a pretty optimistic read given geopolitical risk right now. Middle East stuff tends to cascade — energy spike hits transport, then goods, then wage pressure. BOE's gonna have a harder time justifying the hold if this drags on.