“Sticky Services Inflation and Oil Price Risks May Delay Boe Policy Shifts Despite Weak GDP.”, – WRITE: www.fxempire.com
- UK Inflation Cooled to 3.4% in May, Fueling Special Boe Rate Cut Bets Amid Slowing Economic Momentum.
- Core Inflation Droped to 3.5%, Below Forecasts, Supporting Expectations of EASING MONETARY Policy.
- Sticky Services Inflation May Delay Boe Cuts Despite Weakening GDP and Retail Demand Concerns.
However, Sticky Inflation and Potentilly Higher Oil Prices Could Raise Stagflation Risks. Monetary Policy Uncertainty and A Worsening Economic Outlook May Pressure GBP/USD.
Ahead of May’s Inflation Report, Ing Economics Commented On The Boe’s Potential Rate Path, Stating:
“We Expect the Bank of England to Keep Rates at 4.25% on 19 June, But Some Disappeinting Job Numbers, Lower Wage Growth, and A More Optimistic Outlook for Service. November. ”
Friday’s UpcomING RETAIL Sales Figures Could Give A Better Gauge of Momentum in the UK Economy and the Boe’s Path Forward.
GBP/USD VALATY POST-INFLATION DATA Ahead of the Inflation Report, The GBP/USD Dipped to a Low of $ 1.34145 Before Climbing to a High of $ 1.34489. Following The Report, The Pair Fell To A Low of $ 1.34403 Before Surging to A High of $ 1.34621.
On Wednesday, June 18, The GBP/USD WAS UP 0.19% to $ 1.34530. The Upswing Likely Signled The Potential Impact of Sticky Inflation on the Boe’s Policy Outlook.
