UK interest rates will stay high unless service sector inflation falls, says IMF
by Larry Elliott Economics editor from Economics | The Guardian on (#6P8DJ)
Warning comes as Bank of England policymakers say price growth in service sector could become embedded
The UK faces the prospect of interest rates being higher for longer unless there is more progress in reducing service sector inflation, the International Monetary Fund has warned.
While the Washington-based IMF nudged up its 2024 growth forecasts for the UK, it identified the stickiness of price growth in the service sector as a potential headache for the Bank of England.
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