UK Inflation Turns Screws On Bank Of England – Reactions

Amanda Cheesley

23 March 2023

A rise in UK inflation of 10.4 per cent in February - above analysts' forecasts - puts the Bank of England under pressure to hike rates at its monthly rate-setting meeting today, even though the collapse of , added: “This surprise will disappoint markets which were hoping to see restrictive policy bringing inflation down. Rishi Sunak and the UK government will also be left wanting as halving inflation this year remains one of their key targets.”

“We're already seeing fallout from the rapid rise in interest rates around the world, with weaker banks outside the UK starting to pop under the pressure,” Nicholas Hyett, investment analyst at Wealth Club, continued. “The hope was that a steady drift down in inflation would let central bankers ease back on rate rises. Instead, a spike in food prices, up 18.2 per cent and the highest it’s been since 1977, and higher prices in restaurants and hotels, up 12.1 per cent, means the fight against inflation is not yet over,” Hyett said.