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September BoE MPC Preview: Tightening into recession
Financial markets have become very used to the BoE MPC raising Bank Rate. It has done so at every policy-setting meeting since it began the current tightening cycle last December and expectations are that Thursday’s announcement will make it seven out of seven. Even so, signs of a widening split between the MPC’s doves and hawks mean that the size of the increase is much less certain. Complicating matters a good deal more is the government’s newly announced Energy Price Guarantee. This will cap household energy bills for the next two years and, potentially significantly, lower the near-term inflation outlook ... (full story)