Britain's bond markets rocket higher after double-digit inflation print
projecting inflation will top out at 13.3% in the fourth quarter, along with huge increases expected to the U.K.'s energy price cap, analysts predict the situation to get worse., one of whom will succeed Boris Johnson as prime minister on Sept. 5 after a poll of party members, are under increasing pressure to offer radical solutions to the country's historic cost-of-living crisis.
"To avoid a large hit to consumers, significant further fiscal stimulus would be required beyond what is currently being proposed by either candidate to be the next prime minister," said Mike Bell, global market strategist at JPMorgan Asset Management. "However, if enough stimulus is provided to largely offset the hit to consumers, then the Bank of England may well feel the need to continue raising interest rates. This could then pose a risk to consumption and the housing market via higher mortgage costs."
Unless wage growth and underlying inflationary pressures moderate on their own, without a rise in unemployment, Bell said U.K. policymakers are "stuck between a rock and a hard place."
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mowers Shows Double-Digit Lead Over New Hampshire GOP Primary FieldNew Hampshire’s First Congressional District Republican candidate Matt Mowers shows a double-digit lead over the rest of the GOP primary field.
Read more »
Bond Yields Tick Upward Ahead of Big Housing Data ReleaseU.S. Treasury yields moved higher as investors continue to assess the likely pace and scale of interest rate rises from the Federal Reserve.
Read more »
Plurality Predict Higher Inflation, Gas Prices Six Months from NowA plurality of Americans predict that inflation will rise and gas prices will be higher six months from now, a poll from The Economist/YouGov found.
Read more »
Latest Ghana Inflation Rate the Highest in 19 Years — Economist Recommends Installation of Currency Board – Economics Bitcoin NewsThe Ghanaian government is reportedly hoping an IMF bailout will help restore investor confidence in its economy. imfbailout investorconfidence
Read more »
Walmart CEO: Inflation lures more higher-income shoppersWalmart CEO Doug McMillon told investors during the company's earnings call Tuesday that inflation is drawing higher-income shoppers into the retailer.
Read more »