The BoE has forecast that the economy could be flat in 2024
Daily Currency Update
The BoE has forecast that the economy will be flat in 2024.Zero growth in the latest quarter was down from a 0.2 percent expansion in the three months to June, suggesting that borrowing costs are taking a toll on activity and the cost-of-living crunch is still hitting household spending.
U.K. Chancellor of the Exchequer Jeremy Hunt said high inflation remains the “single greatest barrier to economic growth” in the country.
Key Movers
Powell said Thursday that he and fellow policymakers were encouraged by the recent slowdown in inflation rates but were not yet confident they had achieved a monetary policy stance that is “sufficiently restrictive to bring inflation down to 2 percent over time.”Federal Reserve Chairman Powell has made it clear that inflation is the main concern, and this has been the consistent message from FOMC speakers this week and Central Bankers such as Lagarde and the BOE.
He warned that rate hikes are still on the table, and this is to burst the positive confidence of the markets that the peak in rates has been reached.
US Treasury yields climbed overnight which boosted the dollar.
Expected Ranges
- GBP/USD: 1.22064 - 1.22378 ▼
- GBP/EUR: 1.14414 - 1.14717 ▼
- GBP/AUD: 1.92011 - 1.92385 ▲
- EUR/USD: 1.06561 - 1.06782 ▼