UK CPI Data Signals Caution for BoE Rates on August 1

Wednesday, 17 July 2024, 06:44

The recent Forex market activity saw Sterling holding steady post the UK CPI data release, with core inflation remaining unchanged. The lack of cooling in services inflation may prompt the BoE to delay any rate cuts on August 1. Members of the MPC are likely monitoring disinflation progress before decision-making.

Actionforex — UK CPI Data Signals Caution for BoE Rates on August 1

Forex Market Movement

Today's activity showed Sterling maintaining stability following the UK CPI data announcement.

Core Inflation Unchanged: Both headline and core inflation rates remained steady compared to the previous month.
Caution Ahead of BoE Meeting: Services inflation not cooling could lead to cautious BoE approach on rate cut decisions.
MPs Eye Disinflation Progress: Some MPC members preferring to wait for more disinflation progress before altering rates.

Conclusion

The BoE's attention on UK CPI data and inflation trends indicates a cautious stance, possibly deferring rate cuts in the near term.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Forex Market Movement

Conclusion

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