Daily BriefsMacro

Macro: UK: MIPs Inflation Smoothed Out and more

In today’s briefing:

  • UK: MIPs Inflation Smoothed Out

UK: MIPs Inflation Smoothed Out

By Phil Rush

  • The Bank of England is gearing up for a hiking cycle that would directly lift the RPI inflation rate through mortgage interest payments.
  • Changes in the methodology and mortgage market structure mean the impact response is squashed and smoothed over time. 
  • Inflation market participants and economists may be surprised by the stability.

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