Enable FLP Header Logo

Enable FLP News

Read-up on the latest news from Enable and the industry.

The Bank of England’s inflation report…

In early November the Bank of England released its Inflation Report, as recorded by their Monetary Policy Committee (MPC). The committee decided, by an 8-1 majority, to leave the Bank Rate at its historical low of 0.5%. There was one dissenting MPC member, Ian McCafferty, who would have preferred to see a 25 basis point (1/4%) increase. They did, however, unanimously vote to leave their purchase of assets at the current level of £375 billion. This is also colloquially known as their ‘Quantitative Easing’ programme.

Screenshot2015 12 08at15.00.29 - Enable FLP

As at the end of September, the Consumer Prices Index (CPI) stood at -0.1%, which is marginally more than 2% below the Bank’s own inflation target. They cite lower prices in food, imported goods and energy as the major factors here, with lower domestic cost growth as a lesser influence. The wider core inflation rate currently stands at 1%.

Whilst they believe that CPI will remain subdued at around the 1% level until Q3 or Q4 of 2016, the Bank did confirm that they are determined to return inflation to the 2% target range within two years in a careful and sustainable way, avoiding the danger of it overshooting, should the current disinflationary factors diminish. They also believe domestic momentum is strong, consumer confidence is high and wage growth is continuing to improve.

Given that the MPC believes that the Bank Rate will rise in due course, as inflationary factors reverse, it also expects any such rise to be more gradual and to a lower level than seen in previous economic cycles.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
 • Telephone: 01279 755950 – Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Free Consultation

Call Enable FLP today on 01279 755 950 to book your FREE consultancy and to find out how we can make your money work better for you. Alternatively, send us a message by clicking here and one of our financial experts will call you back