Tag: inflation expectations

Bank of England falls further behind in race to tame inflation

The Bank of England’s Monetary Policy Committee (MPC) has raised interest rates by just a quarter point, to 1.25 per cent. This was the fifth increase in as many meetings, but still leaves rates near historic lows. In my view, this was a mistake. This decision is hard to square with April’s consumer price inflation … Continue reading Bank of England falls further behind in race to tame inflation

Has UK inflation already peaked?

After a long period where almost everyone has been too complacent about inflation, the tide may finally be about to turn. Inflation is now set to peak sooner and fall faster than many expect – even in ‘Brexit Britain’. Admittedly, this is partly a reflection of just how far inflation has already risen. The headline … Continue reading Has UK inflation already peaked?

How much should we worry about inflation?

Many people have written about how the ‘spectre of inflation’ has returned to haunt investors. In fact, the financial markets are still remarkably sanguine, reassured by dovish comments from central banks. This was reasonable in the depths of the Covid recession. Now it looks increasingly complacent. There has already been a sharp rise in government … Continue reading How much should we worry about inflation?