Loading ...
Inflation has been the hot topic everywhere off late.
UK inflation numbers have been reported at 3%. This digit reflects sentiments of the Bank of England intending to raise interest rates earlier and faster than previously expected.
Higher labor costs and robust economic growth outlook are factors that the financial regulators around the globe are trying to rein in with interest rate hikes. Sterling popped to its high of 1.3914 soon after the CPI figures were reported. GBP cross currencies have displayed great sensitivity to relative interest rate differentials across the board and further hike-related updates are expected to certainly impact GBP more.
More than the timing of the rate hike, what will impact the British pound more are surprises in the UK economic cycles and Brexit progression.
