(CercleFinance.com) – Returning to the latest inflation figures in the United Kingdom, Barclays indicates that it is revising its expectations in terms of the Bank of England’s (BoE) monetary policy, in a less accommodating direction than previously expected.
“In April, headline inflation fell, but less sharply than expected”, points out the British bank, being reminded that it was announced by the ONS at 8.7% at an annual rate, in sharp decline compared to 10.1% observed in March.
Above all, Barclays points out that core inflation has accelerated considerably (to 6.8% excluding energy, food, alcohol and tobacco, its highest since March 1992), and that that of services has exceeded forecasts for May of the BoE.
Also, Barclays now forecasts higher underlying inflation towards the end of 2023 and expects the monetary policy committee to vote for a 25 basis point rate hike, not only in June, but also in August, bringing its key rate at 5%.
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