2min chapter

UK Investor Magazine cover image

UK interest rates, GBP/USD and other key markets with OANDA’s Craig Erlam

UK Investor Magazine

CHAPTER

The Impact of Core Inflation on the Interest Rate

If headline inflation falls from 8.7 to 6.7 in the next couple of months, but core inflation remains above 7%. Now, I think interest rate expectations remain broadly the same. Wages are still far below what inflation is. We need to see more sustainable services inflation if we are going to get back to 2% on a sustainable base and the microfingling is going to stop hiking.

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