Investors in UK assets are beginning to bet on a de facto increase in level of inflation the Bank of England will tolerate beyond the official 2% target, two major banks warned. BNY Mellon Investment Management and Bank of America said in separate notes to clients inflation expectations indicated in markets suggest investors think the BOE will let inflation remain above the target for some time, potentially damaging the credibility of the central bank and its goal. While BOE Governor Andrew Bailey and his colleagues have reiterated their commitment to returning inflation to 2%, there’s a growing debate about whether ... (full story)