Taylor Swift’s London Times tour could delay Bank of England interest rate cut | Wilnesh News

LONDON — Taylor Swift’s record-breaking Eras tour continues to spur consumer spending as she enters the UK leg, a sign that the Bank of England may not be out of the woods just yet in the fight against inflation.

With hundreds of thousands of eager Swifties flocking to London in August to sing at her final show in the UK, the economic boost may be enough to postpone a possible coronavirus pandemic in September, according to investment bank TD Securities Cut interest rates.

“We still expect the Bank of England to cut interest rates in August,” the bank’s macro strategist Lucas Krishnan and global head of macro strategy James Rossiter wrote in a note. , but the month’s inflation data may keep the MPC (Monetary Policy Committee) on hold in September.

The Bank of England is expected to soon start cutting bank interest rates from a 16-year high of 5.25%, with all but two of the 65 central banks already cutting interest rates. Economists surveyed by Reuters A rate cut is expected in August and financial markets are pricing in September.

However, analysts said a potential conflict between one of Swift’s August tour dates and a key inflation index day could skew the data enough for the bank to reconsider its path.

“Significant hotel price increases could then have a significant impact, temporarily boosting services inflation by 30 basis points (+15 basis points overall),” Krishnan and Rossiter wrote.

The Bank of England did not respond specifically to the comments in an interview with CNBC, but said that “the Monetary Policy Committee considers a wide range of economic indicators when making interest rate decisions.”

The economic impact of Swift’s sold-out tours has been well-documented, with terms like “Swift inflation” and “Swiftomics” coining to refer to things like hotels, flights and restaurants before and after her shows. A surge in spending on services.

The Grammy winner, who kicked off her UK tour in Edinburgh, Scotland earlier this month, said the concerts and related spending contributed an estimated £77 million ($98 million) to the local economy. In a separate report, Barclays said a full UK tour could be Expected to add £1 billion ($1.27 billion) to the UK economy.

TD Securities said the latest data showed a “bigger than usual” rise in hotel prices in the Scottish capital during Swift’s visit last weekend, while upward pressure was less pronounced in Liverpool, where she was in northwest England on Thursday. reached its peak in the competition.

Swift will also perform in Cardiff, Wales and London later this month. While Swift’s Cardiff date is likely to coincide with the June inflation index day, analysts say the impact is likely to be minimal given the city’s relatively small size.

The Bank of England will meet next Thursday to announce its latest interest rate decision and provide an outlook for future inflation trends.