Taylor Swift's tour unlikely to affect Bank of England interest rate policy – Global News (Trending Perfect)

LONDON — Taylor Swift's record-breaking tour may have led to a surge in restaurant and hotel bookings in the U.K. — but it's unlikely to have much impact on the Bank of England's interest rate cut, an analyst told CNBC.

The pop star returned to Britain this week for five more concerts to add to her total of eight shows at Wembley Stadium this summer – breaking the record for any solo artist performing at the venue.

Barclays expected In May, 1.2 million ticket holders are expected to spend an average of £848 ($1,105) each, meaning the tour could provide a £997 million boost to the UK economy.

The IRAS event creates a “really big economic multiplier effect,” said James Rossiter, head of global macro strategy at TD Securities.

“We have seen a more lasting impact this time, which is on restaurant bookings,” Rossiter told Squawk Box Europe on Wednesday.

So we look at [online restaurant-reservation service] For example, we saw a spike in June around her concerts here, and we actually saw a big spike again over the weekend.

However, the concerts had less of an impact on airfare and hotel prices, according to Rossiter, who explained that a large city like London often sees a surge in tourism in the summer.

Rossiter said TD Securities currently has a baseline assumption that the Bank of England will deliver quarterly cuts of 25 basis points. Earlier this month, the bank cut interest rates for the first time in more than four years, taking its key rate to 5%.

TD Securities previously said the ERA round could be enough to delay a potential September rate cut — and that's the potential impact it could have on the country's inflation data.

Rossiter said on Wednesday he expected the central bank to act “cautiously” when implementing interest rate cuts.

“The tone of their August meeting was very cautious. They're certainly nervous about some of the underlying data. I mean, when you look at wage growth above 5%, when you look at the level of services inflation now, core inflation is still 3.3%, they're not quite ready to go back to neutral,” he said.

Rossiter said big events such as the coronation of the monarch or a Taylor Swift concert would complicate the Bank of England's role because they add “distortions” to the data the central bank analyses when making decisions on monetary policy.

But he added that the IRAS round would not usually affect inflation in the future.

I think [the Bank of England is] “We'll look at the kinds of distortions like the Taylor Swift effect, with a greater focus on wages and some of the other elements of inflation, and we'll treat them very, very carefully,” he said.