All the dayâ€™s economic and financial news, as central bankers hold their final monetary policy meetings of 2017
- Latest: Bank of England monetary policy decision
- BoE warns that growth may slow this quarter
- UK retail sales jump 1.6% in November
- Eurozone PMI hits highest level in nearly seven years
- Introduction: Central bank meetings today
- Janet Yellen raises interest rates in final act as Federal Reserve chair
The Bank of England has flagged up that Britainâ€™s inflation rate hit 3.1% last month – meaning it has failed to meet its goal of keeping the CPI close to 2%.
The BoE pins the blame on the slump in sterling after the EU referendum in June 2016, saying:
It remains the case that inflation has been pushed above the target by the boost to import prices that resulted from the past depreciation of sterling. The MPC judges that inflation is likely to be close to its peak, and will decline towards the 2% target in the medium term.
The Bank of England says that recent UK macroeconomic data has been â€œmixedâ€�, and it fears that growth may have slowed in the last quarter of 2017.
The recent news in the macroeconomic data has been mixed and relatively limited. Global growth has remained strong. Domestically, some activity indicators suggest GDP growth in Q4 might be slightly softer than in Q3.
The measures announced in the Autumn Budget will lessen the drag on aggregate demand stemming from fiscal consolidation, relative to previous plans. The labour market remains tight, and surveys suggest this will continue.