2025-12-18 12:05:49

The Bank of England is signaling that the recent budget measures could add meaningful pressure to inflation over the next couple of years. Looking at the timeline, officials expect the immediate impact to be modest—inflation should drift down toward 3% when Q1 2026 rolls around, then edge closer to the 2% target by Q2. However, the longer-term picture gets trickier. Come 2027 and 2028, that budget-driven stimulus is projected to push prices up by roughly 0.1-0.2 percentage points annually. For traders and investors monitoring monetary policy shifts, this two-stage inflation narrative matters. Near-term cooling could support certain market narratives, but that medium-term uptick might reshape expectations around rate cuts and economic policy down the road. The question becomes whether central banks stay patient with those intermediate inflation readings or adjust their playbook ahead of time.

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MEVvictim

· 2025-12-21 03:46

The operations of the Bank of England are really interesting, first lowering then raising, isn't it just trying to trick us to get on board now lol

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SorryRugPulled

· 2025-12-20 19:06

Another magic show of inflation expectations, coming back in 2027?

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NewDAOdreamer

· 2025-12-18 12:34

The pound is going to be messed with again, dropping to 3% in 2026? Just hear it out, the real pits are in 2027 and 2028.

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SingleForYears

· 2025-12-18 12:34

The UK central bank's rhetoric is sweet at first but bitter later. If they can bring the rate down to 3% next year, we'll pop the champagne. But the year after, we'll have to worry about inflation rebounding. They really treat us like fools.

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YieldWhisperer

· 2025-12-18 12:32

The pound is causing trouble again, this time due to budget issues The central bank is playing word games, aiming to suppress inflation next year, only to have to raise it again the following year, traders will have to keep flipping back and forth In plain terms, it's comfortable in the short term but painful in the long run, a typical case of policy overextension I don't believe the central bank can hold up against the pressure of 2027-2028

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ChainWallflower

· 2025-12-18 12:29

The pound is about to be hit again. The BoE's words sound nice, but in reality, inflation pressure is still overwhelming.

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WalletDivorcer

· 2025-12-18 12:22

The Bank of England's recent moves look comfortable in the short term, but the long-term pitfalls need to be carefully considered... --- The 0.1-0.2% increase in 2027 and 2028 doesn't sound like much, but what about in reality? --- Wait, are they trying to first deceive the market into thinking rates will be cut, and then make a reversal? --- This is a classic case of "sweet first, bitter later." Next year's Q1 looks good, but the following year will require re-pricing. --- I just want to know if the central bank will strongly push back against this wave of inflation... --- Predictions are one thing, but whether the market will follow the script is the real key.

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GhostAddressMiner

· 2025-12-18 12:06

Yet another central bank rhetoric trick... 0.1-0.2 percentage points? Why does this number feel so familiar, just like the sudden fund movements before those dormant wallets wake up? They're all telling you "Don't rush, there's more to come."

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