Elston
  • WHO WE ARE
    • About
    • Contact
    • Insights
    • Events
    • Press
  • WHAT WE DO
    • Research >
      • Markets Dashboard
      • Research Service
      • Research Library
      • Regulatory Research
    • Portfolio Solutions >
      • Our Portfolios
      • Custom Portfolios
      • Portfolio Analytics
    • Fund Solutions >
      • Our Funds
      • Custom Funds
    • Index Solutions >
      • Our indices
      • Custom Indices
    • CPD
  • WHO WE HELP
    • Financial Advisers
    • Discretionary Managers
    • Asset Managers
    • Asset Owners

Insights.

Bank of England raises inflation estimates, pushes back Brexit impact

3/11/2016

0 Comments

 
Inflation
The Bank of England has raised its 2017 inflation estimate to 2.7%, from the current rate of 1%.  The Bank does not expect inflation to return to its 2% target until 2020.

The rise in inflation expectations was explained by the decline in the pound since the EU referendum, which is driving up prices of imported goods.

Fig 1. Projections for UK CPI based on market interest rate expectations
Picture
Source: http://www.bankofengland.co.uk/publications/Pages/inflationreport/2016/nov.aspx

Growth
The economic growth rate forecast was also raised from 0.8% to 1.4% for 2017, whilst expectations were cut for 2018 from 1.8% to 1.5%, signalling that the Brexit impact will be felt later than originally expected.

Further interest rates considered in August have been clearly ruled out.

Fig 2. Projections for UK GDP based on market interest rate expectations
Picture
Source: http://www.bankofengland.co.uk/publications/Pages/inflationreport/2016/nov.aspx

NOTICES: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.  I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it.
This article has been written for a US and UK audience.  Tickers are shown for corresponding and/or similar ETFs prefixed by the relevant exchange code, e.g. “NYSEARCA:” (NYSE Arca Exchange) for US readers; “LON:” (London Stock Exchange) for UK readers.  For research purposes/market commentary only, does not constitute an investment recommendation or advice, and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.  This blog reflects the views of the author and does not necessarily reflect the views of Elston Consulting, its clients or affiliates.  For information and disclaimers, please see www.elstonconsulting.co.uk 
Photo credit: N/A; Chart credit:Bank of England; Table credit: N/A
0 Comments



Leave a Reply.

    ELSTON RESEARCH

    Insights

    Archives

    January 2021
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    September 2019
    June 2019
    April 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    July 2017
    May 2017
    March 2017
    February 2017
    January 2017
    November 2016
    October 2016
    September 2016
    July 2016
    June 2016
    May 2016
    February 2016
    January 2016

    Categories

    All
    Alternative Assets
    Alternative Strategies
    Bonds
    Business Practice
    Equity Income
    Equity Sectors
    ESG
    ETFs
    Factor Investing
    Guide To Investing
    Macro
    MULTI ASSET
    Multi-Asset Income
    Portfolio Construction
    Retirement Investing

    RSS Feed

Company

Home
About
Press
Terms of Use

Services

​​Research
Analytics
Portfolios
Funds
Indices
​Custom Indices

Support

​Insights
​CPD
​Events
​​​Contact
© COPYRIGHT 2012-20. ALL RIGHTS RESERVED.
  • WHO WE ARE
    • About
    • Contact
    • Insights
    • Events
    • Press
  • WHAT WE DO
    • Research >
      • Markets Dashboard
      • Research Service
      • Research Library
      • Regulatory Research
    • Portfolio Solutions >
      • Our Portfolios
      • Custom Portfolios
      • Portfolio Analytics
    • Fund Solutions >
      • Our Funds
      • Custom Funds
    • Index Solutions >
      • Our indices
      • Custom Indices
    • CPD
  • WHO WE HELP
    • Financial Advisers
    • Discretionary Managers
    • Asset Managers
    • Asset Owners