Bank of England likely to raise interest rates again
Tuesday 7 February, 2023
Daily Currency UpdateThe Bank of England is more likely to raise interest rates again than to start cutting them, according to Bank of England policymaker Catherine Mann. Known as one of the more hawkish members of the Bank’s monetary policy committee, Catherine Mann fears that there are “upside risks” to the Bank’s inflation outlook and says that the Bank should ‘stay the course’, after it raised interest rates to 4% last week. In her speech, Mann said Brexit trade barriers were a ‘shock’ to the United Kingdom economy, which wasn’t suffered by the US or the eurozone. UK inflation was recorded at 10.5% in December, above the eurozone’s 9.2% that month – and 8.5% in January - while in the US inflation fell to 6.5% in December.
Key MoversThe US Dollar Index continued last week's gains and closed in positive territory on Monday amid risk aversion. In the absence of high-impact data releases, investors will pay close attention to central bank speakers, including Bank of Canada Governor Tiff Macklem and FOMC Chairman Jerome Powell.
- GBP/USD: 1.1945 - 1.2025 ▼
- GBP/EUR: 1.1205 - 1.1265 ▲
- EUR/USD: 1.0675 - 1.0725 ▼