Sterling Leaps Despite Inflation Data
Sterling leapt Tuesday unhindered by a much bigger-than expected rise in UK inflation. British CPI hit a 16-year high of 5.2 percent in September, forecasts had been for annualised CPI to come in at 5.0 percent.
The September BoE Inflation Report indicated that inflation would rise above 5% in the coming months, so this release is not too surprising, although the ONS said that the BoE MPC did not have access to these figures when making its decision to cut rates last week. However, given the financial market conditions and the increased risk of a sharp and protracted slowdown in growth it's likely that inflationary concerns are less significant than they once were.
At 11.50am BST the pound was around a cent and a half above last nights close at $1.7590.
The September BoE Inflation Report indicated that inflation would rise above 5% in the coming months, so this release is not too surprising, although the ONS said that the BoE MPC did not have access to these figures when making its decision to cut rates last week. However, given the financial market conditions and the increased risk of a sharp and protracted slowdown in growth it's likely that inflationary concerns are less significant than they once were.
At 11.50am BST the pound was around a cent and a half above last nights close at $1.7590.