Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bank of England expects inflation to fall faster than previously predicted

by May 10, 2024
May 10, 2024
Bank of England expects inflation to fall faster than previously predicted

The Bank of England now anticipates that inflation will decline more rapidly than previously forecasted, dropping below the central bank’s 2 per cent target for a sustained period.

This projection implies a need for interest rates to decrease at a faster pace than what financial markets have currently priced in.

According to the latest forecasts by the Bank, inflation is expected to reach 1.9 per cent in two years and 1.6 per cent in three years, reflecting a quicker decline than previously anticipated. The monetary policy committee highlighted that inflation persistence in the UK economy is expected to diminish at a slightly faster rate than previously assumed, although concerns persist about elevated services and wage inflation, which remain at 6 per cent.

The revision in inflation projections indicates that financial markets may have underestimated the necessity for rate reductions by the Bank of England in the coming years. Market expectations for interest rates have declined by 0.7 percentage points since February, prompting the Bank to adjust its inflation forecasts accordingly.

Analysts suggest that the Bank may need to commence rate cuts as early as August to align with the new inflation projections. Governor Andrew Bailey emphasized the likelihood of rate cuts in the upcoming quarters to make monetary policy less restrictive, potentially beyond what is currently reflected in market rates.

Despite the downward revisions in inflation, the Bank’s forecasts indicate an upward revision in economic growth projections. The UK economy is now forecasted to expand by 0.5 per cent this year, up from the previous forecast of 0.25 per cent, with growth expected to reach 1 per cent next year. Additionally, unemployment is expected to rise to 4.9 per cent from the current level of 4.2 per cent, while earnings are projected to increase by 5.25 per cent on average this year, representing an upgrade from the previous forecast of 4 per cent.

Read more:
Bank of England expects inflation to fall faster than previously predicted

0
FacebookTwitterGoogle +Pinterest
previous post
Natwest on track to exceed investment in women led businesses target: lending £1.5bn to date
next post
Nikki Haley to thank donors, but Trump’s last GOP rival not expected to endorse former president

You may also like

Dietrich Mateschitz: One of the worlds leading salesman...

October 24, 2022

Getting to Know You, Frazer Fearnhead, founder, Blue...

February 28, 2024

Blockchain technologies: exploring investment prospects and trends

May 17, 2024

Sention Technologies secures £3.7m seed round to revolutionise...

May 21, 2025

Rachel Reeves weighs a ‘hotel tax’ as treasury...

January 12, 2025

How American Hartford Gold Can Rollover Your IRA

November 4, 2022

UK wage growth stays strong despite softening labour...

April 15, 2025

Global Savings Group calls out Google for anti-competitive...

May 9, 2024

Klarna hits 11 million UK customers as 2024...

May 2, 2025

Bullish bosses rate UK in top three markets...

January 17, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved