NIESR warns BoE timid hikes risk higher-for-longer rates, inflation above target to 2030

The National Institute of Economic and Social Research criticizes the Bank of England's cautious rate hike, arguing it will entrench inflation above the 2% target until at least 2030. This implies a need for more aggressive tightening, which would push UK rates higher for longer. The critique highlights a policy credibility risk and suggests market expectations for rate cuts may be misplaced.

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