Markets will also be looking to any forward guidance that comes alongside the BoE’s decision. If the central bank hikes rates by 25bps then it could see GBP tick higher. Looking to the rest of the week for the Pound, the BoE’s interest rate decision is set to be the key driver of movement in Sterling. ‘There are reasons to believe, by looking at the indirect effect of energy on core, by looking at the pipeline pressures, that there are data points to suggest that underlying inflation measures will ease over time.’ GBP/EUR Exchange Rate Forecast: Will BoE’s 25bps Rate Hike Lend Support to Sterling? Speaking in a Reuters interview published on Wednesday, Lane said: On the other hand, dovish comments from ECB Chief Economist Philip Lane limited the positive impact of Lagarde’s speech. This makes a robust strategy going forward essential,’ ‘Inflation is still high, and uncertainty around its path ahead has increased. Her comments added to expectations of sizeable interest rate hikes from the central bank. The Euro consolidated its gains on Wednesday (EUR), although a return of risk appetite saw EUR slip against the Pound.ĮUR’s gains came after a speech from ECB President Christine Lagarde. Euro (EUR) Exchange Rates Firm after Hawkish Lagarde Comments, Slips Against Pound March’s industrial trends orders, collated by the Confederation of British Industry (CBI), fell to -20. Sterling’s gains were capped by a downturn in manufacturing sector output on Wednesday. We’re still narrowly expecting a 25bp hike on Thursday, and we think the BoE will take a leaf out of the European Central Bank’s book and reiterate that it has the tools available if needed to tackle financial stability.’ ‘We suspect the Bank will want to see more evidence before ending its rate hike cycle entirely, and that’s particularly true after these latest inflation numbers. James Smith, Developed Markets Economist at ING, said: The figures increased pressure on the Bank of England to raise interest rates despite ongoing instability in the global banking sector. The increase was fuelled by a surge in food prices to their highest rate in 45 years. Buoyant inflation data added to speculation that the central bank would push ahead with its 25bps rate hike on Thursday.įebruary’s inflation rose to 10.4% versus a forecast increase of 9.9%. The Pound (GBP) was boosted by fresh Bank of England rate hike bets on Wednesday. Pound (GBP) Exchange Rates Bolstered by Surprise Inflation Rise GBP/EUR’s gains were capped by hawkish comments from European Central Bank (ECB) policymakers.Īt time of writing the GBP/EUR exchange rate was at around €1.1375, which was up roughly 0.2% from that morning’s opening figures. Renewed bets on a 25bps interest rate hike from the Bank of England (BoE) bolstered the pairing after higher-than-forecast inflation data. Some investor protection advocates aren’t so sure.The Pound Euro (GBP/EUR) exchange rate gained on Wednesday. ![]() Gensler’s meme-stock reforms are meant to help retail traders. oil refiners looking at ‘record’ Q1 profits ahead of peak summer season ‘Gaslighters have two signature moves’: Are you being gaslighted at work? Here’s how to recognize the signs. Here’s where to get that kind of return on your savings now Just 7% of Americans with short-term savings are earning more than 4% interest. Would hiring a financial adviser be a smart move? But I can’t afford to buy a home, and am losing money when I invest. ![]() ‘My friends and family say I’m rich.’ I’m 26 and make $100,000 a year living in St. ![]() I have $113K in my 401(k) and no other savings, but I will get an early retirement package of 9 months salary. ‘2023 is the year of the Easter potato’: High egg prices prompt some to look for holiday alternative We are retired with ‘substantial’ pensions and very little debt - how much do I need in a ‘rainy day fund’? Washington's Asia Policy May Be Setting Itself Up for a Fall
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