November 20, 2024
UK Inflation Rate Jumps to 2.3% Hitting the Brakes on a BoE Rate Cut thumbnail
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UK Inflation Rate Jumps to 2.3% Hitting the Brakes on a BoE Rate Cut

UK inflation overshoots estimates, driven by housing costs, signaling potential BoE hesitation on future rate cuts.”, — write: www.fxempire.com

October’s higher headline and core inflation figures could give the BoE more reason to stand pat in December.

Expert Views on the UK Inflation Report Michael Brown, Senior Research Strategist at Pepperstone, recently remarked on BoE Monetary Policy Committee Member Catherine Mann’s views on inflation, stating,

“Doesn’t look like Mann will vote for cuts any time soon.”

Catherine Mann described UK services inflation as “pretty sticky,” with most inflation indicators signaling an upward bias. Mann also highlighted risks from potential energy price spikes.

GBP/USD Response to Inflation Data Ahead of the UK inflation report, the GBP/USD dropped to a pre-report low of $1.26710 before climbing to a high of $1.26950.

However, following the inflation report, the GBP/USD briefly dropped to a low of $1.26741 before rising to a high of $1.27134.

On Wednesday, November 20, the GBP/USD was up 0.17% to $1.27030.

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