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”.
For media enquiries, please contact:
Simon Wilson, KPMG Corporate Communications
T: 0207 311 651
M: 0778 537 3397
Follow us on twitter: @kpmguk
KPMG Press office
T: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.