The inflation expectations of households, businesses and the financial markets will probably rise in the coming months as actual CPI inflation jumps to over 4.0% later this year. But as the rises are most likely to be confined to measures that capture expectations over the next 12 months rather than over the next 5-10 years, we doubt the Bank of England will respond by raising interest rates this year or next.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.