Last week’s labor market and GDP data cut the 25 base point rate of Bank of England to 4%. However, 5–4 votes in favor of cutting rates underlined the inflation of the Monetary Policy Committee and the split stance on the labor market.
Today’s inflation figures reduce the possibility of another cut in September, but economists still estimate an additional reduction in 2025. ING Economics exempted the latest GDP report:
“We suspect that the bank will guess a lot from the performance of strong second quarter development. Most, most, it can increase the arguments of the Hawks that are insisting on the slow rate of rate cuts from now on. But in practice, it will depend on more heavy inflation and job figures.”
Looking forward, ING Economics added:
“We certainly expect GDP figures in the second half of the year, there will be a weak taste for them. The market of jobs is under pressure; parold employment has fallen in eight of the last nine months.”
Will BOE reduce rates in November or December or will the CPI and labor market have the next round of data. For now, July gives a strong voice to data huxes.
GBP/USD volatility post-infection data
Next to inflation report, GBP/USD climbed a high of $ 1.34927 before falling at a low of $ 1.34616. After the report, the pair slipped at a low of $ 1.34757 before the pair rose at a high level of $ 1.34980.
On Wednesday, August 20, GBP/USD rose 0.01% to $ 1.34907, the September BOE reflects low market bets on rate cuts.
