BoE’s Lombardelli: Inflation may exceed forecasts

Bank of England Deputy Governor Clare Lombardelli expressed concerns about inflation potentially rising higher than forecasted, advocating for gradual interest rate cuts.

Speaking at King’s Business School, she emphasised the costly consequences if inflation stabilises at around 3 per cent instead of the BoE’s 2 per cent target.

Some economists predict Britain’s inflation rate could reach 3 per cent in early 2025. Lombardelli noted preliminary data suggesting a slowing UK economy but stressed the importance of timely action.

The BoE has lowered rates twice since August, now at 4.75 per cent, amid concerns about inflation pressure in the job market.

Attribution: Reuters

Subediting: M. S. Salama