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Taylor Swift's London Tour Could Delay BoE Rate Cut

Taylor Swift's London Tour Could Delay BoE Rate Cut
Taylor Swift performs on stage during her Eras Tour at Murrayfield Stadium in Edinburgh, Scotland, June 7, 2024. (AP)

By    |   Friday, 14 June 2024 12:00 PM EDT

Taylor Swift’s record-shattering Eras Tour is expected to pump $1.27 billion into the British economy — and potentially delay an interest rate cut by the Bank of England, CNBC reports.

Hundreds of thousands of Swifties will be descending upon London in August for the superstar’s final UK dates, throwing a wrench into BoE’s fight against inflation and likely delaying a September cut to the nation’s 5.25% Bank Rate.

The economic impact of Swift’s tours on services spending on hotels, flights and restaurants has been so great in the cities where the 14 Grammy Award-winning singer has performed, that it has coined the terms “Swiftflation” and “Swiftonomics.”

“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,” wrote TD Securities Macro Strategist Lucas Krishnan and Head of Global Macro Strategy James Rossiter in a client note on June 14.

Referring to one of Swift’s August tour dates and a key inflation data release, the analysts added: “A surge in hotel prices then could be material, temporarily adding as much as 30 bps (basis points) to services inflation (+15 bps on headline).”

BoE did not respond to the analysts’ comments when contacted by CNBC but said, “The MPC look at a wide range of economic indicators when they make their decisions on interest rates.”

Earlier this month, Swift’s concerts in Edinburgh, Scotland, added an estimated $98 million to the local economy.

TD Securities said the latest data points to a “larger than usual” increase in hotel prices in the Scottish capital, but less pronounced in Liverpool, where Swift finished her northwest England leg of the tour on Thursday.

Later this month, the singer will hold concerts in Cardiff, Wales, and London.

The Bank of England will meet this coming Thursday to deliver its latest interest rate decision and provide its inflation outlook.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
Taylor Swift's record-shattering Eras Tour is expected to pump $1.27 billion into the British economy - and potentially delay an interest rate cut by the Bank of England, CNBC reports.
taylor swift, london, bank of england, swiftie, economic, impact
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2024-00-14
Friday, 14 June 2024 12:00 PM
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