Sterling eased after Central Bank Governor Andrew Bailey’s speech yesterday. Though Bailey didn’t make any truly restrictive comments. Therefore, the pound will remain under pressurereports Antje Praefcke, currency analyst at Commerzbank.
Bailey puts a brake on sterling
“Actually, Bailey is not making a very strong commitment to further toughening measures. Given a double-digit inflation rate, he would have expected more commitment to the rate hike. but obviously the BoE is not willing to inflict (more) damage on the economy and the population to get inflation under control.”
“The BoE continues to move cautiously and is waiting for more data to be released, probably hoping that inflation will drop really fast in the next few monthsas you hope, so you don’t have to take many more steps.”
“Based on Bailey’s comments, it looks like any positive set of economic data will be used by the BoE to tighten rates less or pause the cycle. And this impression cannot be sterling positive. The BoE meeting on March 23 will be of special interest in this context.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
