Boe’s Pill: Growth in the UK is positive, but it is not very dynamic

Agustin Wazne FXStreet

Bank of England (BoE) Chief Economist Huw Pill said on Friday he does not see a collapse in activity, citing forward-looking indicators at an event hosted by Santander, a bank, in London.

Key takeaways:

The key question for me is whether firms' wage and price-setting plans are stabilizing at levels slightly higher than what is consistent with a 2% CPI.

Underlying inflation appears to be more like 2.5%, not 2%.

Growth in the UK is positive, but it is not very dynamic; there is a strong cyclical component.

We are not seeing a collapse in activity, and forward-looking indicators do not suggest that this is likely.

Supply constraints may be significant in understanding the lackluster activity.

A significant portion of the rise in the UK unemployment rate is likely to be structural rather than cyclical.”

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.00%	-0.12%	0.17%	-0.06%	0.13%	-0.21%	-0.16%
EUR	0.00%		-0.09%	0.15%	-0.05%	0.16%	-0.20%	-0.16%
GBP	0.12%	0.09%		0.25%	0.06%	0.26%	-0.09%	-0.04%
JPY	-0.17%	-0.15%	-0.25%		-0.17%	-0.00%	-0.34%	-0.29%
CAD	0.06%	0.05%	-0.06%	0.17%		0.18%	-0.17%	-0.10%
AUD	-0.13%	-0.16%	-0.26%	0.00%	-0.18%		-0.35%	-0.30%
NZD	0.21%	0.20%	0.09%	0.34%	0.17%	0.35%		0.05%
CHF	0.16%	0.16%	0.04%	0.29%	0.10%	0.30%	-0.05%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

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