May 2, 2023
1 min read

Inflation expectations ease as BoE considers next rate hike

The BoE is widely expected to raise borrowing costs again on May 11 after its monthly monetary policy meeting, with inflation running at five times its 2% target….reports Asian Lite News

Inflation expectations in Britain eased in April, bank Citi said on Monday, offering some relief to the Bank of England which is expected to announce a 12th straight interest rate hike next week with investors betting on further increases after that.

Citi said its monthly survey conducted by market research company YouGov showed public expectations for inflation in 12 months’ time eased to 5.2% in April from 5.4% in March and expectations for five to 10 years ahead fell to 3.6% from 3.7%.

Citi economist Benjamin Nabarro said Britain’s high inflation problem – the country’s main measure of consumer price growth remains above 10% – were reflected in the findings which held well above pre-pandemic ranges,” the report said.

“However, today’s data still suggest UK inflation expectations overall remain anchored at target-consistent levels,” Nabarro said.

“With acute shortages and food inflation primarily responsible for recent volatility, we think risks around these data are more likely to ease in the months ahead than intensify further.”

The BoE is widely expected to raise borrowing costs again on May 11 after its monthly monetary policy meeting, with inflation running at five times its 2% target.

Investors are putting a 92% probability on a 25 basis-point increase in Bank Rate to 4.5% and roughly 50 chance of hitting 5% by August.

ALSO READ: Indian, UK Army troops carry out tactical drills

Previous Story

Britain gears up for coronation ceremony after 70 years

Next Story

Coronation may tip economy into contraction in Q2

Latest from -Top News

16 dead in Dhaka factory fire

The death toll in the blaze is likely to rise, warned another fire official, who did not want to be named….reports Asian Lite News At least 16 people have died after a

India wins unopposed seat on UNHRC

India last served on the HRC in 2024, completing a second consecutive term….reports Asian Lite News India has been elected unopposed to the UN Human Rights Council (HRC) for the seventh time,

Relief Rolls In, Restrictions Remain in Gaza

Israeli official noted an Israeli statement saying it would limit the number of aid truckloads entering the Gaza Strip to 300 daily…reports Asian Lite News Relief operations in Gaza have intensified since

Madagascar Under Military Rule

Colonel Michael Randrianirina announced on Tuesday that a military council of the army, gendarmerie, and police has taken control of Madagascar….reports Asian Lite News Colonel Michael Randrianirina, a Malagasy military officer, announced
Go toTop

Don't Miss

Symphony Orchestra of India (SOI) with Indian music maestros set to enthrall UK audiences

Symphony Orchestra of India (SOI)’s  tour will witness the UK

UK inflation hits fresh 40-year high

Inflation has soared to the highest level in decades in