Economics
BOE Is Losing Credibility With the Public, BofA Says
- Brexit referendum has lifted household inflation expectations
- BOE forecasts have been above target for 16 quarters
A city worker walks in view of the Bank of England in London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The Bank of England’s forecasts are losing authority with the public as well as markets, according to Bank of America Merrill Lynch.
Almost half of the U.K. public have no idea where inflation will be in the next five years, a record high. Investors are betting that the next BOE move will be a rate cut even though the bank’s forecasts imply a need for hikes over the next few years.