Filed Under:
Forex pairs in this Article » GBP/USD
FXStreet (Guatemala) - Strategists at RBS are explained that if the 2% target is met on core CPI, then rate hike expectations from the MPC should be restrained.

Key Quotes:

“Having returned to target in December – after 4 years of overshoots – CPI inflation is forecast to remain at 2% in January”.

“We believe this will set the tone for much of the next 12-18 months: the moderation in core inflationary pressures, benign oil and commodity prices, subdued wage inflation, and the appreciation in sterling should help to keep CPI close to 2% and, therefore, restrain Bank Rate hike expectations”.

“As we have emphasised in recent months, it is the faster-than-expected decline in inflation, rather than the faster-than-expected fall in the unemployment rate, that will be the most important influence for monetary policy”.
comments powered by Disqus