Inflation at 3% as expected
A few minutes ago the UK released it's latest inflation numbers, and the key Consumer Price Index (CPI) number came in at bang on forecast at 3%.
Some other measure were slightly lower than expected, however as the main release matched what the markets were expecting, it has had little effect on Sterling.
Inflation is now running at the highest level in more than 5 years, so it does make it more likely that that BoE will have to raise interest rates sooner or later in order to curb this rising inflation.
Mark Carney to hint at interet rate rise?
Later on today the Bank of England governor Mark Carney gives a speech to the treasury select committee. If he makes any comments that hint at an interest rate rise, then expect the Pound to rise against other currencies.
Brexit Negotations ready to move forwards to next stage?
Elsewhere, last night Theresa May had a working dinner with Jean-Claude Juncker and EU negotiator Michel Barnier, along with Brexit Secretary David Davis. There were no revelations other than all parties stating that talks were constructive and friendly. A key word that was used however was that talks must 'accelerate'. Most would agree that after months of talks, it's time that things moved forwards and significant progress needs to be made. The next key event with regards to Brexit will come on Thursday and Friday, when the EU commission end their meeting. It's likely that many of the EU27 will be pushing to move Brexit talks forward and if we see any announcements that hint of this, the Pound would probably benefit.
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Labels: Bank of England, Euro, Foreign Exchange, Interest Rates, Pound Euro Forecast, Sterling, UK Inflation