A piece in Australian financial media:
- Citi’s UK economist Benjamin Nabarro predicted that British inflation will rise above 18 per cent for the first time in almost half a century next year due to rocketing energy prices.
The forecast is significantly higher than the Bank of England’s projection earlier this month that inflation would peak at just over 13 per cent.
The BoE will be required to raise interest rates to 6 per cent or 7 per cent “should signs of more embedded inflation emerge,” Mr Nabarro warned.
--
What an ugly outlook indeed.
Here is the link to the AFR for more. (gated)
