BOE’s Inflation Outlook May Affect August Stimulus Plans: Chartby
The pound’s slide since Britain opted to quit the European Union is fueling differences among the Bank of England’s nine-member Monetary Policy Committee about the outlook for inflation. Sterling has weakened at least 7 percent against all its G-10 peers, prompting economists in a Bloomberg survey to boost their forecasts for price growth. While two officials have warned about the risk of inflation exceeding the 2 percent target, two others have signaled they’re willing to look through an overshoot. How the debate plays out is likely to affect the size and scope of any August stimulus package.