Taylor Swift's London Eras Tour poses potential delay for Bank of England rate cut: CNBC

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CNBC reported.TD Securities told CNBC that the influx of hundreds of thousands of fans to London in August for Swift’s final U.K. performances could stimulate the economy enough to delay a potential interest rate cut in September.“We still anticipate a BoE cut in August, but the inflation data for that month might keep the MPC (Monetary Policy Committee) on hold in September," the bank’s macro strategist, Lucas Krishan, and its head of global macro strategy, James Rossiter, wrote in a note Friday.The Bank of England is anticipated to start lowering its bank rate from the 16-year high of 5.25 percent soon.

Among 65 economists surveyed by Reuters, all but two expect a rate cut in August, while financial markets are betting on a September cut.However, analysts noted that one of Swift's August tour dates coinciding with a key inflation index day could skew the data, potentially causing the bank to reconsider its timeline."A surge in hotel prices could be significant, potentially adding up to 30 basis points to services inflation and 15 basis points to headline inflation," Krishan and Rossiter told CNBC.When contacted by CNBC, the Bank of England did not specifically address these comments but stated, "The MPC considers a wide range of economic indicators when making decisions on interest rates."The CNBC report also highlighted the well-documented economic impact of Swift’s sold-out tour, with terms like “Swiftflation" and “Swiftonomics" emerging to describe the surge in spending on services such as hotels, flights, and restaurants around her performances.In Edinburgh, Scotland, where the Grammy winner kicked off her U.K. leg earlier this month, local authorities estimated that the concerts and related spending contributed