Moneyfarm CIO: Sinking inflation won't change fiscal pressures, tariffs hamper BoE rate cuts
On 26 March, Richard Flax, chief investment officer at Moneyfarm, said in a report that data showing a modest drop in UK inflation in February is unlikely to ease fiscal pressures, according to Golden Ten Data.
The UK's annual headline inflation rate fell slightly more than expected to 2.8 per cent in February from 3.0 per cent in January.
Flax said the UK Chancellor of the Exchequer may take some comfort from the continued easing of inflation, but this modest drop will do little to alleviate fiscal pressures.
He also said the risk of tariffs could raise the cost of imports and drive up inflation, thus limiting the Bank of England's room for rate cuts.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Silver Price Forecast: XAG/USD trades flat around $53 ahead of US inflation data
Swiss Franc holds ground as US Dollar consolidates ahead of CPI inflation data
Net profit surges fivefold but masks decline in core business; crypto mining companies' shift to AI poses hidden risks
Marathon Holdings' Q3 net profit reached $632 million, up 413% year-on-year. However, its mining revenue declined by 35%. The company relied on selling 13,500 BTC to pay off debts and is now betting on AI infrastructure, increasing the risk of an imbalanced profit structure.
Lithium-For-Earth Raises KRW 1.32 Billion in Private Placement
Crypto prices
More
