Rolling coverage of the latest economic and financial news
Analysts at ING have predicted that UK inflation will tumble this spring, allowing the Bank of England to lower interest rates twice by the summer.
ING estimate that headline inflation will fall to 1.8% in April from 3.4% in December – crucially, that would take the consumer prices index below the Bank’s 2% target.
We forecast inflation will drop to 1.8% in April before hovering at the 2% target through the spring and summer. What’s more, we think roughly 0.8 percentage points of the decline from December’s reading is virtually locked in – an artefact of regulated price changes and tax changes.
Continue reading…Rolling coverage of the latest economic and financial newsAnalysts at ING have predicted that UK inflation will tumble this spring, allowing the Bank of England to lower interest rates twice by the summer.ING estimate that headline inflation will fall to 1.8% in April from 3.4% in December – crucially, that would take the consumer prices index below the Bank’s 2% target.We forecast inflation will drop to 1.8% in April before hovering at the 2% target through the spring and summer. What’s more, we think roughly 0.8 percentage points of the decline from December’s reading is virtually locked in – an artefact of regulated price changes and tax changes. Continue reading…
