Credibility Crisis in the UK Deepens Rate and Inflation Risks

  • UK has lost fiscal and monetary credibility in recent weeks
  • Rate risks elevated as inflation expecations become embedded

The Bank of England in London. 

Photographer: Hollie Adams/Bloomberg
Lock
This article is for subscribers only.

Follow us at @BloombergUK and on Facebook, and wrap up your day with The Readout newsletter with Allegra Stratton.

The UK has lost fiscal and now monetary credibility, increasing the risk of structurally higher inflation and rates.