BoE Poised to Raise Interest Rates
Citibank says the Bank of England appears increasingly concerned over inflationary pressures in the UK and is therefore poised to raise interest rates ahead of other major central banks, including those of the Eurozone and U.S.The futures market has priced in a 57% probability of a 0.15% hike in February.
In level terms, EUR/USD remains in a very narrow range close to the 1.1800 threshold. Meanwhile, GBP/EUR is pinned down in the lower half of the 1.1765-1.1630 trading band. Elsewhere, GBP/USD continues to change hands within $1.3800-1.3900.
Today’s calendar has a busier schedule of releases. Already this morning, we have had a raft of UK labour market data that includes the unemployment rate printing. Meanwhile, later today, the focus will be on US inflation with the CPI readings for August due. In July, inflation remained elevated at multi-year highs. The headline rate is expected to edge moderately lower to 5.3%, while the core rate is forecast at 4.2%.