Analysts at HSBC out with a brief insights on the upcoming UK CPI report due tomorrow at 0830GMT, saying that they believe the inflationary pressures should prove temporary.
Inflation in the UK has overshot the BOE’s 2% target, coming in at 2.9% in last month.
Meanwhile on the BOE monetary policy action going forward, HSBC noted: “We believe the UK is in the midst of a structural and political upheaval that warrants inaction from the BoE. If the BoE were to hike, we think it could actually lead to GBP weakness rather than strength."
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