0807 GMT - While U.K. inflation is set to accelerate in the months ahead, the bar for the Bank of England to raise interest rates remains high, KPMG U.K. chief economist Yael Selfin says. Annual inflation was 3.0% in February, unchanged from January. "Weakness in the labor market and the wider economy should limit the extent to which inflation becomes more persistent," she says in a note. If the Middle East conflict concludes in the coming weeks, the bank could keep rates on hold until the second half of this year and resume its easing cycle in November, she says. However, there remains risks that inflation could push sharply up in the third quarter onward if disruptions to energy supplies persist, she says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
March 25, 2026 04:07 ET (08:07 GMT)
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