“Markets Eye a November Boe Rate Cut After July’s GDP Data, But Rising UK Inflation and Steady Jobless Rates May Delay Dovish Policy Moves.”, – WRITE: www.fxempire.com
Despite Today’s GDP Data, The Boe Wuld Likely Need to See Inflation Sopten Sharpy and Wage Growth to Sofn Furhther to Give The Boe Doves A Stronger Case To Cuts.
Against this Backdrop, Ing Economics Noted:
“Inflation Needs to Show Further Progress, and On Headline Cpi at Least, That Is Unlikely Before November … But the News Isn’t All Bad. The Bank Ultimately Cares MOSTAS Think There Is Scope for this to Modestly Undershoot the Boe’s Forecasts Before November.
On the Labor Market, Ing Economics Suggested that Slower Wage Growth Could Potentilly Adjust the Boe’s Rate Path.
Elevated Inflation and Interest Rats, and Softer Wage Growth Could Material Impact Disposable IncomAme and the Economy.
Will Next Week’s Inflation and Labor Market Data Confirm the Need for Action? UK Inflation and Labor Market Data Are Due Out on September 15 and September 17, Respectively.
A Sharp Drop in Inflation and Wages Could Potentilly Green Light a November Boe Rate Cut. Rising Expectations of a November Rate Cut Wuld Likely Weight On The GBP/USD, Exposing Sub- $ 1.35.
GBP/USD REACTION TO JULY’S GDP REPORT Ahead of the UK GDP Report, The GBP/USD BRIEFLY CLIMBED TO A HIGH OF $ 1.35804 Before Falling To A Low of $ 1.35521.
However, in Response to the Report, The GBP/USD TumbLED from $ 1.35580 to A Low of $ 1.35496, Reflection Sentiment Toward The Economic Slowdown.
On Friday, September 12, The GBP/USD Was Down 0.15% to $ 1.35507. The Boe’s Complicited Policy Outlook Contrasts with The US Federal Reserve, Widly Expectioned to Cut Rates Next Week.