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Sterling higher as markets weigh on inflation data

There were no data releases from the UK this morning. Markets are still pricing yesterday CPI figures. To remind ourselves inflation beat expectations – year-on-year inflation now sits at 0.1%, ahead of predictions for a reading of 0%. Note that wages are rising and this will inevitably feed into the inflation profile in coming months. Consumers should not get used to the present conditions.
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Sterling little changed in a quite Monday trade

There were no data releases from the UK this morning so Sterling was little changed after last week's decline below 1.55 handle. Last Thursday the Bank of England had little to say as investors were taken by surprise earlier when the bank said only one of its nine policymakers had voted for a rate rise at their August meeting. Most economists had expected two or even three members of the monetary policy committee to vote for a rise. The surprise 8-1 result prompted markets to push out their bets on a first rate increase. Read more...

BoE closer to rate hike

Bank of England policymakers voted unanimously to keep interest rates on hold earlier this month but there were signs that more of them were edging closer to pushing for a first hike since before the financial crisis.Minutes of the Monetary Policy Committee's meeting, which ended on July 8, showed its members voted 9-0 to leave rates at their record low of 0.5 percent.
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Will BoE rise interest rates this year?

After more than six years of highly accommodative monetary policy in Britain, this year could be the one when the BoE eventually lifts off the ground level toward more normal monetary settings. At least this is what the most recent comments by the BoE top officials suggest.  Read more...

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