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Inflation Undershoot To Prompt Further Rate Cut

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DELOITTE

Inflation undershoot to prompt further rate cuts

Roger Bootle’s response to April’s MPC meeting

http://www.deloitte.com/dtt/article/0,1002...53D8619,00.html

The Monetary Policy Committee today left interest rates at 4.5% for the eighth month in a row and a majority of economists now think that rates will stay there for the rest of the year. However, I still think that policy will be loosened in the second half of the year as inflation undershoots the target. ...

Admittedly, the recent price hikes by some domestic gas and electricity suppliers pose a threat to the inflation outlook in the near-term. But with competitive pressures on the high street set to remain intense as the consumer sector remains weak, I think that CPI inflation will fall significantly below its 2% target later this year. A marked undershoot of the inflation target will prompt the MPC to reduce interest rates again in the second half of the year, possibly to 4%.

Roger Bootle

Isn't this chap he's one on the bears Fav Economist, or isn't he now that he's stopped prediciting a house price crash? Sorry I seem to be out of the loop on who is in and who is out of Fav.

Economic Adviser

Deloitte

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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