Deloitte comments on today's interest rate decision

Commenting on today’s interest rate decision from the Bank of England, Debapratim De, senior economist at Deloitte, said: 

“Although inflation is expected to fall below the Bank of England's 2% target this month, price pressures haven't fully dissipated. For the Bank to judge inflation as beaten, wage rises and services pricing need to moderate.

“With tomorrow's GDP data likely to show that economic activity is picking up, the Bank is understandably in no hurry to cut rates. Given the strength of the labour market and improving growth prospects, we might have to wait until autumn for conclusive evidence of abating price pressures and the Bank's first interest rate cut.”

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