BOE Will Probably Get U.K. Inflation Wrong Again in 2019

(Bloomberg) -- The Bank of England was surprised by inflation in 2018, as the rate fell a lot faster than it expected. The likely gyrations in sterling brought on by the Brexit negotiations and the uncertainty about how this will impact price gains will make life difficult for the central bank again in 2019. Assuming there’s a Brexit deal, Bloomberg Economics expects price gains to stay below the BOE’s 2 percent target this year -- another rate hike is likely to come shortly after an orderly exit.

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