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BOE preview: a thin table mountain
A new set of economic forecasts will be the focus at this week’s BOE monetary policy meeting which are likely to revise inflation downward among other metrics. According to the November MPR, by the end of 2023 inflation was expected to be at 4.6%, unemployment at 4.3%, and wages at 7.25%. Inflation dropped to 4% in December, unemployment ended the year at 4.2%, and wages dropped to 6.5% already in November. The November projections showed inflation to revert close to the 2% target by Q4 2025. That is assuming a bank rate of 5.1% at the end of this year, dropping to 4.2% only in 2026. Faster disinflationary trends ... (full story)