BoE: Rate hikes unlikely to bring inflation back to target - ANZ

Analysts at ANZ note that the Bank of England’s Vlieghe said that three rate hikes over the forecast horizon would still result in excess demand and “wouldn’t quite get inflation back to target.”

Key Quotes

“McCafferty said that “it’s likely rates will need to go up earlier, but gradually.” Both speakers’ comments are in line with last week’s decision from the BOE to change the language around monetary tightening to “somewhat earlier and by a somewhat greater extent.”