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How BOE Went From Warning About 5% Rates to Closing In on Them
The Bank of England has changed its outlook dramatically since inflation first breached the 2% target in May 2021, including huge forecast adjustments in the past few months alone. Inflation is now 10.1%, and will still be 5.1% at year’s end, the BOE forecast on Thursday. Even then, it will be higher than the current 4.9% rate in the US. The inflation overshoot and forecast U-turns are raising questions about the BOE’s grasp of where the economy is headed, with its framework and recent track record currently under scrutiny in Parliament. “It does create a credibility issue,” said Kallum Pickering, senior ... (full story)