City analysts have slashed their expectations for a cut in interest rates and it may be because of global superstar Taylor Swift.  

On August 1, the Bank of England is due to review inflation and decide whether it has fallen enough to allow them to reduce the base rate down from its current 5.25%.

However, inflation is modeled on the Consumer Prices Index, including owner occupiers’ housing costs. Broadly speaking, this is the change in prices for goods and services over time.

And one of the multitude of prices that goes into the index is the cost of hotel rooms.

“It’s me, hi, I’m the problem it’s me”

So in June, when Taylor Swift’s Eras tour rolled into town, the cost of nearby hotel rooms shot up and upset the recent trend of falling inflation.

But the good news is that these higher prices in hospitality and entertainment were counterbalanced by price reductions in clothing and footwear, and as a result overall the rate of inflation stayed flat at 2.8%.

“Haters’ gonna hate hate hate hate hate”

Is this analysis too simplistic? Very likely – so don’t throw too much shade at the Swifties, even if you may have to wait a little longer to see your business’ variable rate loan costs reduce.

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