GBP Rebound Could Reduce Inflation Overshoot

Sterling’s strong performance over the past month suggests inflation may overshoot the Bank of England’s target by less than it forecast in November, the central bank said on Thursday.

BoE policymakers agreed unanimously to keep interest rates on hold at a record low 0.25 percent and left plans for government and corporate bond purchases unchanged after their December policy meeting, as economists polled by Reuters had expected.

Last month Bank policymakers dropped their plan for another interest rate cut and instead adopted a neutral stance for policy, after Britain’s economy suffered much less immediate damage from June’s Brexit vote than early data had suggested.

Reuters

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