MPC will raise target to 3%, said Mercater

Mercater Capital Management is predicting the Bank of England's MPC will push the inflation target u...

Mercater Capital Management is predicting the Bank of England’s MPC will push the inflation target upwards. Chief investment officer and director David Oakes said he expects the target will be reset to 3% instead of the current 2% after the summer review. He said it is highly likely there will be an adjustment in order for the BoE to bring interest rates down, in turn weakening sterling. He said: “As for the news that the UK fiscal rules are going to be relaxed, that should come as no surprise as nobody sensible ever believed them. But it does mean more issuance of gilts and it may be...