Hawkish BOE Watchers Say Risk of 7% Rates in the UK Is Receding
- Adam Posen and Allan Monks say inflation is still a problem
- Slower inflation prompted markets to scale back bets on rates
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Two forecasters who warned that UK interest rates may reach 7% have said the risk has receded following a big drop in the headline inflation rate this week.
Allan Monks, economist at JPMorgan Chase, said “the risk has declined,” but inflation could still “get stuck above 2%.”