Commerzbank economists analyze the outlook for the British pound following Bank of England (BoE) Governor Andrew Bailey’s speech at the Henry Plumb Memorial Lecture.
BoE Governor has words of warning
BoE Governor Andrew Bailey repeated in a speech on Monday that it was too early to consider rate cuts as some components of inflation remain too high and wage growth continues to rise strongly. In this way, his comments contrast with those of Huw Pill, a member of the BoE, who considered rate cuts very possible, such as those expected by financial markets from mid-2024.
Until Bailey represents the majority of BoE members with his words of warning they are likely to provide little support to the Pound.
Source: Fx Street
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