The latest Bank of England (BoE) Decision Maker Panel (DMP) survey for February showed on Thursday that UK companies expect their selling prices and wage inflation to cool down over the next year.
Key takeaways
Selling price expectations dipped to 4.1% from 4.3%, the lowest reading since October 2021.
Wage growth expectations for the coming 12 months fell to 4.9% on a three-month moving average basis from 5.2% in February, marking the lowest reading since June 2022.
The survey is one of the most closely watched by members of the BoE’s Monetary Policy Committee (MPC).
Market reaction
The Pound Sterling is unfazed by the UK businesses’ falling inflation expectations, as GBP/USD adds 0.08% on the day to trade at 1.2658, as of writing.
