Economists hope that on Thursday, September 18, there are two votes in favor of policy relaxation and seven to maintain interest rates at 4%. A higher number of votes to cut rates on Thursday may increase the hopes of adjustment of November policy of November. However, the increase in inflation and wages will require a rapid fall for a green-light for a policy adjustment in September.
ING Economics commented on labor market data, said:
“The employment of the private sector has further fallen in August, which should help increase the wages less than 4% by the end of the year. It further keeps the door open to make the Bank of England easier, although our call hangs in balance for cuts in November rate.”
GBP/USD Turned Post-Infection Data
Next to inflation report, GBP/USD fell to a high level of $ 1.36369 to a high level of $ 1.36589. Following the inflation report, the pair briefly increased to $ 1.36526 before falling at a low of $ 1.36419.
On Wednesday, September 17, GBP/USD was flat at $ 1.36456, which reflects uncertainty about BOE’s policy approach through the fourth quarter.
