UK Inflation Surprise Dims Hopes for Boe Rate Cut in August; GBP/USD Spikes

More Information In Our Economic Calendar Hotter Inflation Clouds Boe Rate Cut Outlook The Inflation Report Followed Weaker-Qan-Exectored GDP Numbers, Which Had Fueled Special Special About ABout A Boe Rate Cut. NotBly, The UK Economy Expanded 0.5% in the Three Months to May, Down from 0.7% in April. Meanwhile the Economy Contracted by 0.1% on a montholy basis, Supporting a more dovish Boe Policy Stance.

Simon Pittaway, Senior Economist at the Resolute Foundation, Commented On the GDP Report, Stating:

“WITH NEGATIVE GROWTH IN THE LAST TWO MONHS OF DATA, The UK’s LATE 2024/Early 2025 Growth Spurt Looks to Be Lozing Steam. You Can Can See this More Clearly in the 3M-on-3M Data to Fall Further In Next Month’s Q2 Data As March’s Upgraded Monthly Growth Figure (0.4%) Falls Out of the 3M Window. ”

Ahead of Today’s Inflation Figures, Boe Monetary Policy Committe Member Catherine Mann Remarked on Inflation Levels, Stating:

“We have seen wage rades come down, so people are getting wage increases, but not at the past in the past. OUR 2% OBJECTIVE. ”