Comment on rise in inflation from Simon Webb at LiveMore
22 March 2023
Simon Webb, managing director of capital markets and finance at LiveMore, commented: “The rise in inflation is disappointing and remains well above the Bank of England’s target with high growth in prices, especially in the essentials such as food and energy. The halt on the rise of the energy cap in April for a further three months is welcome but it is only a temporary measure.”
| “Markets still expect the Bank of England to raise interest rates in the short term by another 0.25%, although are split between whether that happens in March or May with other global factors at play aside from the war in Ukraine." |  |
“The emergence of a potential new banking crisis (the collapse last week of Silicon Valley Bank and Signature Bank in the US and Credit Suisse being rescued via a takeover from UBS) doesn’t bode well for the global banking system and adds a further dynamic for central banks to consider when making decisions around interest rates. The question is what impact do all of these factors have on inflation?”
