WASHINGTON (Reuters) -The Bank of England should be “very cautious” about further interest rate cuts due to rising inflation expectations among households and investors, the International Monetary Fund’s chief economist, Pierre-Olivier Gourinchas, said on Tuesday.
The IMF had just forecast that Britain’s economy would have the highest inflation in the Group of Seven rich economies this year and next, largely due to what it judges will be temporary factors, but Gourinchas said there was a risk inflation could be higher.
“The path forward for the Bank of England should be very cautious in its easing trajectory and make sure that inflation is on the right track,” Gourinchas told a press conference.
(Reporting by David Milliken; editing by Dan Burns)
