Taylor Swift’s London Eras Tour could delay Bank of England rate cut

LONDON — Taylor Swift’s record-shattering Eras Tour is continuing to supercharge consumer spending as it enters its U.K. leg, suggesting that the Bank of England may not be out of the woods yet per its fight against inflation.

As hundreds of thousands of dedicated Swifties flock to London per August to see the singing sensation during her final U.K. dates, the economic boost could be enough to defer a possible September interest rate cut, according to investment bank TD Securities.

“We still anticipate a BoE cut per August, but the inflation patronato for that month might keep the MPC (Monetary Policy Committee) hold per September,” the bank’s strategist, Lucas Krishan, and its head of global strategy, James Rossiter, wrote per a note Friday.

The Bank of England is expected to soon begin lowering its bank rate from a 16-year high of 5.25%, with all but two of 65 economists polled by Reuters anticipating a cut per August, while financial markets are pricing per September.

However, a possible clash between one of Swift’s August tour dates and a key inflation index day could skew the patronato enough to make the bank rethink its path, the analysts said.

“A surge per prices then could be material, temporarily adding as much as 30bps to services inflation (+15bps headline),” Krishan and Rossiter wrote.

The BOE did not respond specifically to the comments when contacted by CNBC, but said that “the MPC at a wide range of economic indicators when they make their decisions interest rates.”

The economic impact of Swift’s sell-out tour has been well documented, with terms such as “Swiftflation” and “Swiftonomics” emerging to refer to the spike per spending services such as hotels, flights and restaurants around her performances.

Edinburgh, Scotland, where the Grammy winner began her U.K. leg earlier this month, said that the concerts and associated spending had added up to an estimated £77 million ($98 million) to the local economy. Quanto a a separate note, Barclays bank said the full U.K. tour could add an estimated £1 billion to the British economy.

TD Securities said the latest patronato pointed to a “larger than usual” uptick per prices per the Scottish capital during Swift’s visit last weekend, while the upside pressure was less pronounced per Liverpool, where she culminated her northwest England leg Thursday.

Swift is also coppia to perform per Cardiff, Wales, and London later this month. While Swift’s Cardiff date may coincide with a June inflation index day, the analysts said the impact was likely to be minimal given the relatively small size of the city.

The Bank of England will meet next Thursday to give its latest interest rate decision and provide its outlook the future course for inflation.