Bank of England predicts inflation peaking above 3pcBusiness | 24 Jun 2021 8:10 pm
The Bank of England increased its forecast for inflation to rise further above its 2 percent target, saying it was now likely to peak above 3 percent but that would only be for a "temporary period" and it would keep a close eye on medium-term inflation expectations, Reuters reports.
The BoE's nine monetary policymakers voted 8-1 to keep its government bond-buying program at £875 billion (US$1.22 trillion).
They voted 9-0 in favor of keeping its corporate bond program at £20 billion.
Chief Economist Andy Haldane, who leaves the BoE later this month, voted for a second meeting in a row to scale back the bond-buying plan by £50 billion.
The Monetary Policy Committee voted 9-0 to keep Bank Rate unchanged.
"Building global input cost pressures had increasingly been passed through into manufacturing output prices and non-oil import prices," the BoE said in minutes of its meeting.
"CPI inflation was expected to pick up further above the target, owing primarily to developments in energy and other commodity prices, and was likely to exceed 3 percent for a temporary period, peaking higher than previously thought."