KPMG comments on today’s interest rate decision

“Base interest rates have likely reached their peak” says Yael Selfin, Chief Economist at KPMG UK.

“Base interest rates have likely reached their peak” says Yael Selfin

“Today’s increase in Bank of England’s Bank Rate is likely to be its last for this tightening cycle despite the higher inflation data released yesterday. We do not expect any major shifts to monetary policy until the middle of next year which could see a series of rate cuts on the back of weaker inflation in the medium term.

“The recent stronger than expected data on GDP and inflation has warranted another rate increase this week, with the Bank of England joining the ranks of the European Central Bank and the US Fed in tightening policy further. Set against that, the recent tensions in the banking system and the lingering risk of a recession should keep a lid on interest rates going forward, although if the tightness in the labour market proves to be more persistent that could leave the Bank stuck between a rock and a hard place.”



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Notes to Editors:  


KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

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