WASHINGTON (Reuters) -The Bank of England should be "very cautious" about further interest rate cuts due to rising inflation expectations among households and investors, the International Monetary
Bank of England should be 'very cautious' about future rate cuts, IMF
IMF's Stance on Bank of England's Rate Decisions
WASHINGTON (Reuters) -The Bank of England should be "very cautious" about further interest rate cuts due to rising inflation expectations among households and investors, the International Monetary Fund's chief economist, Pierre-Olivier Gourinchas, said on Tuesday.
Current Inflation Trends
The IMF had just forecast that Britain's economy would have the highest inflation in the Group of Seven rich economies this year and next, largely due to what it judges will be temporary factors, but Gourinchas said there was a risk inflation could be higher.
Economic Forecast for the UK
"The path forward for the Bank of England should be very cautious in its easing trajectory and make sure that inflation is on the right track," Gourinchas told a press conference.
Recommendations for Caution
(Reporting by David Milliken; editing by Dan Burns)
