UBS: The Bank of England may raise inflation and economic growth forecasts at the August meeting

UBS economists said in a report that the Bank of England may raise its inflation and economic growth forecasts for the UK in 2025. They stated that, given the inflation data in June exceeded expectations, the Bank of England might slightly raise its inflation forecast for the UK in 2025 from 3.3% to 3.5%. UBS indicated that after the first quarter GDP growth exceeded expectations, the growth forecast may also be slightly adjusted upward. "Compared to the Bank of England's assumptions in May, we expect energy prices and the effective pound exchange rate to be revised upward, while the policy interest rate assumption may remain largely unchanged."