The latest UK CPI print saw its biggest downside surprise in almost two years. Economists at Commerzbank analyze GBP following inflation data.
UK inflation surprise is putting pressure on Sterling
British consumer prices rose much less quickly in June than expected. The resulting strong market reaction confirms our expectation that the rate expectations priced in by the market do not justify sustainable GBP strength.
Instead, we assume that the Bank of England will only tighten its monetary policy as far as necessary to control inflation expectations. The downside correction of the rate expectations following Wednesday’s inflation data is therefore not far reaching enough for us, and we see further correction potential towards a weaker GBP.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
