Pantheon Macroeconomics
Best viewed on a device with a bigger screen...
24th Aug 2022 13:33U.K., Daily Monitor
Sterling has dropped, despite a sharp rise in Bank Rate expectations, because expected inflation has soared.
But the MPC will have flexibility if, as we expect, core inflation falls, boosting the expected real rate.
We expect the U.S. Fed to be more cautious than investors expect, easing some of the pressure on the MPC.
brexit, core cpi, core cpi inflation, cpi, cpi inflation, depreciation, euro, fed, headline rate, imports, interest rate, liquidity, March, mpc, natural gas, oil, oil prices, ois, ois rates, rpi, sterling, trade, u.s., winter, Pantheon Macro, Pantheon Macroeconomics, independent macro research, independent research, ian shepherdson, economic intelligence