Latest News

Sterling edges up after UK inflation soars to nearly 30-year high


© Reuters. FILE PHOTO: A two Euro coin is pictured next to a one Pound coin on top of a portrait of Britain’s Queen Elizabeth in this file photo illustration shot March 16, 2016. REUTERS/Phil Noble

LONDON (Reuters) -Sterling edged up versus the dollar and euro on Wednesday after data showed inflation in Britain at a nearly 30-year high, reinforcing expectations the Bank of England will further hike interest rates.

The annual rate of consumer price inflation rose to 5.5% in January, the highest since March 1992, and above expectations from economists for it to hold at December’s 5.4%.

Wider markets remained jittery about the threat of Russia invading Ukraine. The United States and NATO said Russia was still building up troops around Ukraine on Wednesday despite Moscow’s insistence it was pulling back.

Soaring inflation across many global economies has sparked a debate about how fast central banks should rein in stimulus deployed earlier in the COVID-19 pandemic to prop up businesses and consumers.

The BoE has already raised interest rates twice since December – lifting rates to 0.5% from 0.1% – and financial markets expect a further rate rise to 0.75% or 1% on March 17 after the BoE’s next meeting.

“As we have come to expect the (inflation) data was stronger than the consensus. However, the beat was marginal,” said currency analysts at MUFG in a note.

“It won’t change BoE expectations over coming meetings and hence GBP impact should also be minimal.”

Sterling was last up 0.2% versus the dollar at $1.35720..

Against the euro, the pound was also up 0.2% at 83.71 pence per euro.

Sterling edges up after UK inflation soars to nearly 30-year high

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Kraft Heinz plans more price hikes as sales, earnings beat estimates

Previous article

Years after calling Bitcoin ‘rat poison,’ Warren Buffett just invested $1 billion in a crypto-friendly bank

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News