Supply and demand shocks
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BOE Holds Rates at 3.75% in Tight Decision
Bloomberg Television· 2026-02-05 15:27
Let me start with you. The vote split. A bit of a surprise, then, I guess.Yes, it is. But at the same time, it's not because the data points clearly in the direction of falling inflation. So let me maybe frame it from the perspective of supply and demand shocks.So what we saw in 2025 was a year of a couple shocks. So these were negative supply shocks because of fiscal policy and because of tariffs. Right.So it was more expensive for firms to produce and they had to pass on some of the high prices. But going ...