LONDON DAILY ARCHIVE
Bank of England Rate-Setter Perceives "News" in Decline of Service Inflation Bank of England policymaker Jonathan Haskel, who previously supported rate hikes, notes a decrease in service sector inflation, potentially signaling a shift in his view
Despite a larger-than-anticipated drop in overall November inflation to 3.9%, Haskel highlights this sector's price changes, which the Bank closely monitors due to its impact on wage inflation, as significant.
28 December 2023 · 19:31 UTC
Haskel, with two others, has voted for a rate increase to 5.5%, in contrast to the majority's choice to maintain rates at 5.25%.
The next rate decision is set for February 1, amid speculation of future cuts, despite the Bank indicating it's premature to consider such moves.
Investors expect multiple rate reductions in 2024, but some economists worry the Bank may be slow to respond to declining inflation.