Brexit Talks Bring Ray of Light to Deluded U.K. Inflation Market
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Brexit risks have distorted the outlook for U.K. inflation ever since the 2016 Brexit referendum. The market may be about to discover by exactly how much.
Betting on lower inflation expectations has been a painful trade for investors in recent years. The persistent high level, given a no-deal exit from the European Union would lead to a pound slump and a spike in prices, appears in contrast to the U.K.’s sagging economy.