Despite a silent but effective QE program, the Bank of England is sure about the fact that disinflation in the UK is not over yet
There’s a pretty significant difference in August and Novermber inflation forecast issued by the Bank of England:
The August data brought a clear message: the BOE thought disinflation was over, and that the 2% target was so close that Mark Carney started talking about a possible rate hike that could have come “sooner than expected”.
The November data bring a clear message too: the BOE thinks disinflation is not over at all, and inflation rate will hit 1% in the first months of 2015, so there is no reason to think of a rate hike at the moment
August, September, October and November. Nowadays, four months are enough to completely change the direction of monetary policy in a mature economy, that’s fascinating.