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Hawkish BOE Watchers Say Risk of 7% Rates in the UK Is Receding
Two forecasters who warned that UK interest rates may reach 7% have said the risk has receded following a big drop in the headline inflation rate this week. Allan Monks, economist at JPMorgan Chase, said “the risk has declined,” but inflation could still “get stuck above 2%.” Adam Posen, president of the Peterson Institute for International Economics and a former member of the Bank of England’s rate-setting committee, said, “The market is right to downgrade the likelihood of the monetary policy committee going towards 7%, but it shouldn’t yet be ruled out.” Both said the central bank may still have to ... (full story)