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UK INFLATION AND INTERET RATE EXPECTATIONS

I am sure you are likely aware of the Bank of England increase to interest rates from 2.25% to 3% yesterday.

We are often asked about Interest rate expectations given that many of our clients have mortgages.

It may be somewhat reassuring that the Bank of England expect key measures of inflation to fall moving forward.

Here a few interesting graphs:

Source: Bank of England

The UK is not alone in tackling inflation/interest rates
as can be seen here:

Source: Bloomberg Finance L.P. and Bank calculations

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