Pound Sterling Price News and Forecast: GBP/USD declines despite Bailey hawkish comments
|GBP/USD retreats from 1.3760 to 1.3710 despite increasing bets of a BoE’s hike rate
The British pound is sliding during the New York session, down some 0.23%, is trading at 1.3712 at the 2time of writing. Surging energy prices, higher inflationary pressures witnessed on the last CPI readings in developed country’s economies, and central banks tightening monetary policy dented the market sentiment.
Bank of England goes nuclear on rates, but the pound doesn’t follow suit
The major news at the start of this week is that the Bank of England are now expected to be the first of the major central banks to hike interest rates, after BOE Governor, Andrew Bailey, said on Sunday that a surge in energy prices would have a longer-lasting effect on inflation, which raises the chances of “embedded expectations”, which is why he was using his platform to signal that the Bank of England “will have to act”.
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