The surge in gilt yields above the level reached after the Truss/Kwarteng mini-budget last September has pushed mortgage rates even higher and illustrates that most of the drag on real activity and inflation from higher interest rates has yet to be felt. And the heat in the housing rental market, which has pushed CPI rents inflation to a 29-year high, illustrates the persistence of domestic inflation. The latter is one reason why the Bank of England has more work to do.
UK Drop-In (22nd June): Join our 20-minute briefing on the Bank of England’s June rate decision and the UK economic, housing market and policy outlook. Register now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services