- Ready to act against inflationary pressures stemming from developments in the Middle East to deliver price stability over the medium term
- Task of mon pol is to provide clarity on the pursuit of price stability
- Upside risks to price stability mounting due to the events in the gulf
Current market pricing is for 69 bps of rate hikes this year with an 80% chance of the first hike coming on April 30. I see that date as an advantageous one for the BOE because if the Iran war is resolved by then, they can wait, if not they can act.
Cable bounced yesterday but is down 50 pips to 1.3373 today. The pound is relatively stable since the start of the war but it’s a country that imports a lot of energy.
This article was written by Adam Button at investinglive.com.
