The Bank of England (BoE) already faced a tough decision at its next meeting on 5 May. How to quell inflation without scuppering the UK economy? GDP, employment, and inflation data this week just made the BoE’s job a whole lot harder. That’s potential bad news for GBP/USD, which rode high on a hawkish BoE at the turn of this year. Meanwhile, the US Federal Reserve is now steadfast in its commitment to raise interest rates in the face of high inflation.
Everything was different prior to the BoE’s March meeting. One of the first major central banks to begin raising interest rates in December of last year, the BoE was expected to keep better pace with the Fed in terms of policy tightening. A 15 bps …
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