Consumer prices rose four percent in January adding further pressure to the Bank of England to raise interest rates from the current 0.5 percent. As speculation that the Bank will be forced to act within the next two months grows, the pound has enjoyed a boost rising to a two-week high against the dollar earlier today.
“It seems inevitable that rates will need to go up in the next two quarters,†said Chris Huddleston, a trader at Investec Bank Plc in London. “The retail data adds to that argument. The market is moving to price in further gains in sterling.â€Â
Source: Bloomberg
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by Scott Boyd (see all)
- Japan’s Demographic Trap - 25 June 2012
- Officials Talk Openly of Greek Euro Exit - 16 May 2012
- Greek Voters Prepare to Roll the Dice - 15 May 2012