At present, most measures of longer-term inflation expectations stand at around two per cent, although recent above-target revisions to some indicators warrant continued monitoring. For that purpose we look at a wide spectrum of market-based and survey-based expectations indicators (Chart 21). Market-based indicators suggest that inflation will return to levels compatible with our target in the course of 2024.
This is something we can see clearly in the financial services sector. Public interest in financial stability is the reason why a far-reaching free trade agreement in this area is rather unlikely. That’s because the UK government has chosen to leave the single market and the customs union, and withdraw from the associated regulatory framework.