Yael Selfin, Head of Macroeconomics, KPMG UK, comments on today's Bank of England announcements.
Yael Selfin, Head of Macroeconomics, KPMG in the UK, said:
“The resilience of the UK economy since the Brexit vote makes today’s decision to keep interest rates unchanged the right one. The shallower path of any potential downturn in the economy over the next two years means that the bank can now keep the little ammunition it has left for any further turbulence ahead.”
“The sharp fall in sterling has been the main event since the vote to leave the EU, and fears of rising inflation as a result of that, are gathering momentum. Whilst the Bank of England raised its inflation forecasts in its latest Inflation Report, they remain slightly below our own forecast for 2017. It is likely that the bank will tolerate a sustained period of inflation higher than its 2% target, but the chances of additional monetary stimulus are dwindling by the day”.
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