Chief Economist at KPMG UK, Yael Selfin comments on today’s Inflation Report and MPC meeting
“Cloud of Brexit uncertainty curtails Bank of England’s rate rising desires” says Yael Selfin, Chief Economist at KPMG UK:
“The postponement of Brexit and the uncertainties associated with the process is holding the Bank of England back from acting on interest rates, with businesses and households’ need of policy stability given priority at this stage.
“Accelerating wage growth despite the prospects of inflation not rising above the BoE target of 2% in the short run will no doubt make some MPC members squirm in their seats.
“However, the dismal performance of business investment over the past year calls for an accommodative stance by the MPC to help raise productivity and increase the economy’s productive capacity. This will reduce inflationary pressure and raise long term growth.”
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