From 9% to 1% Inflation? How BOE May Shock Markets

The Bank of England warned in March that inflation could hit double digits this year. For now, that looks unlikely. But the BOE’s next forecast, due May 5, will probably still flag a ‘double-top’ peak of about 9% in both April and October. SHOK, Bloomberg Economics’ in-house model of the U.K. economy, suggests the forecast three years ahead could be equally eye-catching with inflation potentially settling near 1%.

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