UK | MPC predicts larger but still brief inflation burst

The MPC now thinks CPI inflation could exceed 3% this year, with the risk of an even bigger overshoot of the BoE’s 2% target. However, the majority on the committee maintained the view that higher inflation will be transitory.

What you will learn:

• In his final meeting, Andrew Haldane voted again to scale QE back by £50bn.
• Other opinions on how to judge whether inflationary pressures were temporary or persistent differed. But while the MPC will likely cut the pace of QE further in August, the chances of a more abrupt move in policy are low.
• The outcome of June’s MPC meeting repeated that of the previous month.