BoE may not hike rates sufficiently to control inflation, pummeling GBP – Commerzbank
|The Bank of England (BoE) might struggle to get inflation under control. Therefore, economists at Commerzbank expect sterling to remain under pressure.
BoE still wants to show consideration for the bond markets
“Doubts might soon arise as to whether the BoE will actually stick to its restrictive monetary policy if the economy were to fall into a significantly deeper recession than so far assumed. In addition, the BoE apparently still wants to show consideration for the bond markets and thus the treasury by wanting to delay its QT plans.”
“We remain sceptical whether the central bank will hike rates sufficiently to get inflation under control, and as a result, we also remain rather pessimistic as far as sterling is concerned.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.