Want to create an interactive transcript for this episode?
Podcast: Beyond Currency
Episode: 11 April 2023 - Bank of England to face a dilemma
Description: The hike in utility prices that came into force on April 1st has had the effect of slowing retail activity, even though the wholesale cost of energy has fallen since last Summer.
Should this continue rather than being a knee-jerk reaction, the Bank of England will be faced with an awkward decision when it next meets early next month.
Inflation is falling, and while that is expected to continue by the markets, there are two imponderables. The first is core inflation, which doesn’t include energy and foodstuffs, is not reacting to rate hikes as much as the headline.
Furthermore, th...