International Economic Week in Review: Will Inflation Be the Story of 2017?

     Recent English statistics show an economy that is resilient in the fact of Brexit.  But the BOE is projecting slower growth and rising price pressures in 2017, potentially placing them in a medium-term policy bind.  On Wednesday, the Bank of England maintained rates at .25%, while also continuing their current pace of asset purchases.  In the medium term, the bank projects higher unemployment (about 5.5% by mid-2018), slower growth and higher prices (a 2% CPI within 6 months).  This forecast is consistent with the Brexit vote, which will slow trade, leading to lower overall growth.  The post-Brexit drop in…

Source: XE news feed
International Economic Week in Review: Will Inflation Be the Story of 2017?