Expect BOE to Reduce Its Inflation Outlook, Skarica Says

May 8, 2025 - By 4idiotz

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Article Summary

Bruna Skarica, a UK economist at Morgan Stanley, discusses the outlook for inflation in light of the Bank of England’s recent decision. Skarica suggests that the BOE is likely to significantly reduce its inflation forecast in the near term, predicting 3% by the end of the year and 2% for this time next year.

Original Post

Bruna Skarica, UK economist at Morgan Stanley, discusses the outlook for inflation amid today’s Bank of England decision. Speaking on Bloomberg Television, she says the BOE is likely to “meaningfully reduce” its inflation outlook in the near term. “We actually think they’ll be forecasting something around 3% into year end and potentially 2% for this time next year,” Skarica says.

What This Means for You

Monitor inflation rates and adjust financial plans accordingly, as the BOE’s forecasted drop in inflation may impact savings and investments.
Keep an eye on potential changes in interest rates, as a reduction in inflation may lead to lower rates.
Consider locking in fixed rates for loans or mortgages, as a decrease in inflation could result in lower borrowing costs.
Be prepared for volatility in financial markets, as sudden shifts in inflation and interest rates can cause market fluctuations.