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News Release

London

Jones Lang LaSalle comments on Bank of England quarterly Inflation Report


London, 12th February 2014- Commenting on today’s publication of the latest Bank of England Inflation Report and continuing speculation on interest rate rises,
Jon Neale, Head of UK Research at Jones Lang LaSalle, said: “The UK is certainly in recovery mode, but despite the positive indicators it remains fragile. The Bank of England is tasked with maintaining stability and growth while exiting from the abnormal monetary conditions of recent years. Business investment remains relatively low, and productivity and real wages have not risen. Governor Carney doubtlessly would like to see some movement here before any change on base rates, but at the same time is probably eyeing the buoyant housing market, which although not yet in bubble territory, is a risk factor – particularly given the relationship to consumer confidence and debt.

"Our belief is that the Bank will want to see the recovery become more robust and broadly-based before any change, and that will not be clear until late 2014 or early 2015. Nevertheless, this year will be one of endless speculation about when the Bank will raise base rates, and market expectations will continue to build over the year.”