Daily Digest - 1 September
The latest YouGov poll has expectations for UK household inflation over the next 5-10 years to average at 4.8 percent, a record high for the poll and well ahead of the two percent inflation target.
Nationwide has UK house prices up 10 percent year on year in August, down from 11 percent in July, but still ahead of forecasts of 8.9 percent given elsewhere.
The Fed's Mester states that rates need to be lifted to "above four percent by early next year" and does not expect rate cuts next year. She also said it was far too soon to conclude inflation has peaked, as the Fed continues to push out the narrative that it is fully committed to easing high asset prices.
The Bank of France's Francois Villeroy states that the next ECB rate move must be carried out with determination, but in an orderly and predictable way, and does not see a recession in Europe in 2022. However, he added that nothing can be ruled out for 2023.