The need for caution indicates a gradual withdrawal of policy restrictions

Vaseline1 week ago

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The need for caution indicates a gradual withdrawal of policy restrictions

Bank of England (BoE) chief economist Huw Pill said in an appearance scheduled for Friday that there was “ample cause for caution in assessing the dissipation of persistent inflation”.

Pill added that “the need for such caution indicates a gradual withdrawal of monetary policy restrictions.”

Additional comments

Further cuts in bank rates remain in the offing, but it will be important to guard against the risk of cutting rates either too much or too quickly.

I remain concerned about the possibility that structural changes could support longer-lasting inflationary pressures.

Current wage and service price inflation is a continuing source of concern.

Market reaction

At press time, GBP/USD is down despite the cautious comments, trading up 0.21% on the day at 1.3150.

Pound Sterling PRICE Today

The table below shows the percentage change in the British Pound (GBP) against the main listed currencies today. Sterling was strongest against the New Zealand dollar.

	USD	EURO	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.07%	-0.24%	-0.37%	0.03%	-0.04%	0.12%	0.02%
EURO	-0.07%		-0.26%	-0.45%	-0.02%	-0.12%	0.07%	-0.07%
GBP	0.24%	0.26%		-0.13%	0.27%	0.17%	0.35%	0.21%
JPY	0.37%	0.45%	0.13%		0.41%	0.33%	0.48%	0.36%
CAD	-0.03%	0.02%	-0.27%	-0.41%		-0.09%	0.12%	-0.06%
AUD	0.04%	0.12%	-0.17%	-0.33%	0.09%		0.18%	-0.01%
NZD	-0.12%	-0.07%	-0.35%	-0.48%	-0.12%	-0.18%		-0.16%
CHF	-0.02%	0.07%	-0.21%	-0.36%	0.06%	0.00%	0.16%

The heatmap shows the percentage changes of major currencies against each other. The base currency is chosen from the left column, while the quoted currency is chosen from the top row. For example, if you choose British Pound in the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will be GBP (basis)/USD (quote).

Vaseline1 week ago

0 1 minute read

Additional comments

Market reaction

Pound Sterling PRICE Today

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