- The Pound Sterling exhibits a poor performance against all major currencies amid uncertainty ahead of the United Kingdom (UK) Consumer Price Index (CPI) data for May and the Bank of England’s (BoE) interest rate policy, which are scheduled for Wednesday and Thursday, respectively.
- Economists expect the UK Office for National Statistics (ONS) to report a sharp decline in the core CPI, which strips off the more volatile items, to 3.5% from 3.9% in April. The headline inflation is expected to return to the central bank’s target of 2.0% from the prior reading of 2.3%. Investors will keenly focus on service inflation, which has been a major barrier to the BoE’s move towards policy normalization.
- The expected decline in UK inflation will increase investors’ confidence that price pressures will stabilize near the desired rate. This will boost expectations of early rate cuts by the Bank of England (BoE). For June’s policy meeting, the BoE is expected to leave interest rates unchanged at 5.25%. Investors will pay close attention to the vote split and fresh cues on the interest rate outlook.
- In the last policy meeting, BoE Deputy Governor Dave Ramsden joined policymaker Swati Dhingra and voted for lowering interest rates by 25 basis points (bps) to 5.0%. Currently, investors remain split between August or September meetings from when the BoE could start reducing interest rates.
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.
이 글이 마음에 드시나요? 작성자에게 팁을 보내 감사의 마음을 전하세요.
더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.