Connect with us

Hi, what are you looking for?


Inflation in the UK is worsening as the British pound continues to dip

The Bank of England is expected to make an important decision this week as it contends with the impact of the latest government energy cost plan, which has changed the inflation outlook and the plunging pound.

Monetary Policy Committee to hike interest rate

With the Monetary Policy Committee expected to reveal its latest move on Thursday, analysts are uncertain whether there will be a 50 or 75 basis points interest hike, as reported by Invezz on September 19th. According to initial numbers released by the Office for National Statistics, headline inflation in the UK dropped to 9.9% annually in August, down from 10.1% in July, thanks to gas prices drop.

The terms of a fresh government economic plan, which would include a ceiling on home energy costs, are expected next week. However, experts are unconvinced that this indicates that inflation is yet to peak.

The Bank of England predicted at its most recent meeting that inflation might reach 13.3% by year-end, with firms like Goldman Sachs (NYSE:GS) and Citi (NYSE:C) predicting absurdly higher consumer price index (CPI) readings in 2023. The Bank’s predictions for inflation will probably be reduced due to the administration of incoming Prime Minister Liz Truss announcing new policies.

TD Securities Strategists: British pound in a “doom loop”

Last week the British pound hit a fresh 37-year low versus the dollar following concerns about the economy as Britain’s cost of living crisis starts to put pressure on activity. Surprisingly the Bank of England cannot do anything to prevent the decline of the British pound, according to TD Securities strategists who expect more losses in months to come.

The strategists indicated that the soaring gas prices feeding into low currency values and weak economic growth have trapped the pound in a “doom loop.” They predict the British pound to drop to $1.11 by the end of this year which is a 3% loss from current levels. However, the Bank of England wishes to slow and finally reverse the loop, its monetary policy that will minimise the slowdown in the coming months because policymakers can’t bridge the energy deficit.

The post Inflation in the UK is worsening as the British pound continues to dip appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...


    U.S. District Court Judge Reed O’Connor recently ruled to uphold the rights of employers granted in the Religious Freedom Restoration Act, rather than uphold...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023