Articles - Sterling jumps after B of E quarterly inflation report


 Sterling jumps higher after the Bank of England releases its latest quarterly inflation report
  
 "Sterling made broad gains this morning after the Bank of England released its updated forecasts on economic growth and inflation in the U.K. for the next two years. There were no major surprises in their forecasts, though it was mentioned that there is a chance inflation will reach 5% at some point this year, and that it will remain above the 2% target throughout 2012. This, plus their slightly more upbeat stance on economic growth has caused market expectations for an interest rate rise to be brought forward from January next year to December this year. In turn we have seen a Sterling high against its major peers.
  
 "Today's report, whilst far from revelatory has perhaps got some economists and forecasters to revisit just how negative they are on the U.K. economy. Similar to most of Europe and America, growth has continued. Whilst compared to the years prior to the financial crisis the economy remains depressed, recovery is as expected following a historically devastating banking crisis. When trying to understand currency movements it's important to look at economic data in relative terms. There is an argument that there is a lot of bad news priced into the value of Sterling, and not enough in the value of the Euro. This has been highlighted by the recent 4% drop in the value of the Euro against the Pound and the US Dollar, in less than a week, after a less hawkish statement from the ECB and concerns over Greek debt!
 "Sterling gained just over of 1% to 1.15 against the Euro and a similar amount against the US Dollar to 1.65 following the report and the press conference".

 
  

Back to Index


Similar News to this Story

Can AI led conversational commerce change insurance forever
If you’re still following the minutiae of Brexit, if you know exactly what the Backstop entails, and if you understand how the UK’s proposed departu
The diversification trap and how to avoid it
Pension schemes often focus on maximising diversification within a scheme’s governance constraints. However, if this pursuit of diversification goes t
Signs of demand pressures in the bulk annuity market
Another record breaking year in bulk annuity market is on the cards, but what does this mean for schemes and sponsors eyeing future transactions as pa

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.