In the midst of the UK's worst cost-of-living crisis, the Bank of England is expected to raise interest rates more aggressively, according to a Reuters poll

The Reuters poll conducted on May 12-17 asked when the cost of living concerns will rise to their peak level. Seven out of the 13 correspondents replied to this additional question. Three of the seven said it will be in the next quarter, and the othe

May 18, 2022 - 03:10 PM 245 views

In the midst of the UK's worst cost-of-living crisis, the Bank of England is expected to raise interest rates more aggre

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© In the midst of the UK's worst cost-of-living crisis, the Bank of England is expected to raise interest rates more aggre

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According to a recent Reuters report, the Bank of England (BoE) is expected to tighten monetary policy more aggressively than previously predicted, despite the UK fiscal economy grappling with the worst cost of living concerns in three decades.

Important Findings

The Reuters poll conducted on May 12-17 asked when the cost of living concerns will rise to their peak level. Seven out of the 13 correspondents replied to this additional question. Three of the seven said it will be in the next quarter, and the other three said it will be by the end of the month.

"Inflation is expected to average 8.3 percent next quarter, up from 8.7 percent this quarter, according to poll participants, up from 7.9 percent and 8.4 percent in April."

"Medians in the poll indicates it growing to 1.25 percent in June and 1.50 percent the next quarter before a surge to 1.75 percent in the second quarter of 2023," according to the report.

"Fifteen predicted it to be less than 1.50 percent, 22 expected it to be at that level, and 19 expected it to be higher, with the highest estimates at 2.25 percent."

"The economy will increase 3.7 percent on average in 2022, then 1.3 percent the following year, according to the median projections of nearly 70 economists, down from 3.8 percent and 1.7 percent last month."

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