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BoE will need to raise rates to 4.75% to bring down inflation - NIESR

Published 11/11/2022, 12:06
Updated 11/11/2022, 12:11
© Reuters. FILE PHOTO: A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska

LONDON (Reuters) - The Bank of England will probably need to raise interest rates to 4.75% in order to bring inflation back to its 2% target, something only likely to be achieved in three years' time, the National Institute of Economic and Social Research said.

Last week, the BoE raised Bank Rate to 3% as it sought to counter the risks from an inflation rate currently running above 10%, but it also said investors were pricing in too many further increases.

 

 

Latest comments

cost of sanctions crisis
End war in Ukraine. Calm tensions with China. That will bring inflation down. No need to clobber the UK public.
what's their thinking, if you make everyone homeless or sitting on negative equity with massive mortgages payments, no-one could afford anything so prices would have to come down?. most uk inflation comes from imported goods,food and energy what uk rates won't affect them prices at all.
But a stronger GBP and weaker USD would offset. As it’s the gas to run the power stations and oil to run vehicles. As commodities are priced in USD, which oil and gas are.
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