UK inflation likely to face small downside risk - TDS

FXStreet (Delhi) – Research Team at TDS, sees small downside risk to December’s inflation report, with consensus looking for 0.2% y/y while they forecast a repeat of November’s 0.1% y/y.

Key Quotes

“Everyone is on board with 1.2% y/y for core. As we pointed out in a recent note, cost pressures remain subdued, and the big move down in oil prices in recent months means that UK inflation is unlikely to break much above half a percent by the middle of 2016.

Carney also gives a speech at noon, and here we hope to see him provide an update on his views on the appropriate timing of a hike in Bank Rate.”