MARKET OUTLOOK - The Surge in Inflation Will Not Prevent the BoE from Lowering Interest Rates
Foreks - According to Ruth Gregory from Capital Economics, the inflation spike in October will not prevent the Bank of England from lowering interest rates, but it will force policymakers to decrease rates only gradually. The Office for National Statistics reported that annual inflation rose from 1.7% in September to 2.3%, marking the fastest increase in the past two years, with core prices also gaining momentum. Gregory noted that this momentum suggests inflation may exceed current forecasts in the coming months, stating, “Unless there is a significant downward surprise in the November inflation data, the bank will almost certainly keep rates on hold at 4.75% at its next meeting in December.”