Market Outlook: If Inflation in the UK Remains Above 2%, BoE May Be Less Eager to Cut Rates

Suren Thiru from the Institute of Chartered Accountants in England and Wales stated that a significant increase in inflation in the UK could lead to a more cautious approach from the Bank of England's policy committee. Thiru noted that pointing to government spending plans and global trade pressures, this trend is expected to continue upward. He emphasized that if inflation remains above the Bank of England's 2% target next year, the bank may be less willing to implement further interest rate cuts.