Bloomberg Surveillance · Thursday, July 16, 2026
Bank of America's research team anticipates that inflation will persist longer than previously expected, with a full resolution not likely until 2028. This projection is based on the economy's continued strength, sustained consumer spending, and employment consistency.
“They had three rate rises this year, and I think that was an outlier, and with some of these numbers. They may change that. But the principle they're saying is inflation will be here longer. It'll take us into twenty eight to squeeze it out.”
“That's probably a year later than they thought six months a year ago, but they've raised their know If you think about the travel of the last twelve months, two and a half two percent GDP growth of twenty six down to one and a half back up to two two three, that's showing that they're believing that they're ai build out the consumer spending consistency. The employment consistency overweights this and that's why rates will stay higher because the economy is strong enough inflation and then you've got to wait through the second wave of inflation for gas prices.”
“But the principle was inflation is going to be sticky, and we think it's a year sticker a few months ago.”