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One and Done Hike? Least Committed Rate Rise we could have seen – Comment from WorldFirst
Jeremy Cook, Chief Economist at WorldFirst, comments:
“The all-important guidance for the future is that this may be the only rate rise for a while. For the Bank to drop the line that ‘rates may need to rise more than the market expects’ is not a supportive move for future rate rise expectations.
“Alongside a slight weakening of inflation forecasts, the opinion that ‘the decision to leave the European Union [is] already having a noticeable impact on the economic outlook’ means that this is about the least committed hike we could have seen. The MPC couldn’t come out and say: ‘this is a one and done hike’, but the comments are hugely unsupportive towards the argument that rates need to be higher in the UK to protect against a glut of inflation in the very near future.
“One would think consumers will be breathing a slight sigh of relief.”
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