BOE Must Not Enter Panic Mode on Inflation: CEBR CEO

The transcript discusses the trajectory of inflation, noting a potential deceleration in the coming months. It highlights factors like seasonal adjustments and the services sector's price stickiness. The Bank of England's response to inflation, particularly regarding interest rates, is examined, emphasizing the need for a cautious approach. The unique challenges of the UK housing market, especially concerning mortgages, are also explored, with potential implications for the economy.

What factors are mentioned as influencing the current inflation trajectory?

• Technological advancements

• Bank holidays and weather

• Global oil prices

• Government subsidies

What is the suggested course of action for the Bank of England regarding interest rates?

• Increase by 50 basis points

• Maintain a 25 basis point increase

• Eliminate interest rates

• Decrease by 25 basis points

Why is the UK housing market considered more precarious compared to other countries?

• Higher property taxes

• Stricter lending regulations

• Shorter fixed mortgage terms

• Lack of housing supply

What is a potential consequence if mortgage rates rise too high in the UK?

• Increased foreign investment

• Higher employment rates

• A housing boom

• A recession

How does the UK mortgage market differ from that of the US and Germany?

• UK mortgages are fixed for shorter durations

• UK has more variable rate mortgages

• UK has lower interest rates

• UK offers longer fixed terms