15 Jul 2013
Flash: GBP/USD may gather pace after inflation data – DailyFX
FXstreet.com (Córdoba) - The near-term rebound in the British Pound may gather pace over the next 24-hours of trading as the headline CPI reading in the UK is expected to expand an annualized 3.0% in June, which would mark the fastest pace of growth since April 2012, according to David Song, Currency Analyst at DailyFX.
"Indeed, heightening price pressures may push the BoE to adopt a more hawkish tone for monetary policy as the U.K. has faced above-target inflation since December 2009, and the Monetary Policy Committee may look to switch gears later this year in an effort to ensure central bank credibility", says Song. "Although there's speculation that the BoE will ultimately adopt a growth target under Governor Mark Carney, the MPC remains poised to operate under its inflation-targeting framework, and we may see the central bank slowly move away from its easing cycle over the coming months as the Funding for Lending Scheme continues to work its way through the real economy."
"Indeed, heightening price pressures may push the BoE to adopt a more hawkish tone for monetary policy as the U.K. has faced above-target inflation since December 2009, and the Monetary Policy Committee may look to switch gears later this year in an effort to ensure central bank credibility", says Song. "Although there's speculation that the BoE will ultimately adopt a growth target under Governor Mark Carney, the MPC remains poised to operate under its inflation-targeting framework, and we may see the central bank slowly move away from its easing cycle over the coming months as the Funding for Lending Scheme continues to work its way through the real economy."