Preview: BoE forecasts broadly on track for hike
- Domestic economic developments have been broadly in line with the BoE’s May forecast, despite some surprises to the consensus, especially on inflation.- Financial market movements are putting upward pressure on the inflation outlook to the extent that their downward pressure since the March meeting has unwound.
- Stretching of the MPC’s revealed collective preferences sets up for a hawkish surprise, in my view, especially as the consensus is for an unchanged vote split.
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