“UK GDP Beats Forecasts, But Rising Inflation May Push Boe Rate Cuts To November or Later. Boe Faces A Policy Dilemma As Growth Firms and Inflation Forecasts Rise.”, – WRITE: www.fxempire.com
The NEXT UK CPI Report, Out on August 20, Will Likely Dictate Near-Term Bets on Further Boe Rate Cuts. Economists Forecast the Annual Inflation to Rise from 3.6% In June to 4% in July. The Boe May Be Relctant To Cut Rates if Inflation Climbs Higher, Pushing Back A Potential Rate Cut to November or Possibly December.
Ing economics signaled a november Boe Rate Cut, Stating:
“We Still Think The Bank’s Conceerns About Inflation Will Prove Overblown. There’s No Reason in and Of Itelf that Inflation Will Become More Entrenched, Simplas Bee -Tent. Workers Being Able to Chase Higher Wages, As They Bid to Retain Purchasing Power. ”
However, Ing Economics Warned:
“We’re Sticking to Our Call, But Were the Next Couple of Inflation Reports to Surprise to the Upside, or If The Recent Falls in Private-Sector Employment Start to Be.
GBP/USD Reaction to The Q2 GDP Report Before The UK GDP Report, The GBP/USD FELL TO A LOW OF $ 1.35639 Before Climbing to a High of $ 1.35919.
However, in Response to the Report, The GBP/USD Briefly Tumbled to a Low of $ 1.35685 Before Rising to A High of $ 1.35858 Amid EASING BETS ON APEMBER BOE RATE CUT.
On Friday, August 14, The GBP/USD WAS UP 0.05% to $ 1.35806.