Sterling might have scope for a temporary recovery – Commerzbank
|The Bank of England (BoE) meeting did not provide much of a surprise. The BoE left the Bank Rate unchanged. Economists at Commerzbank analyze Sterling’s outlook.
Convincing for now
Everything was as expected and the comments in the BoE’s monetary policy report and the press conference were apparently not considered to be too dovish.
BoE Governor Andrew Bailey underlined repeatedly during the press conference that price stability was the BoE’s mandate. Rather than preventing a recession for example. Moreover, it was premature to consider rate cuts. The market seems to be buying that.
The question is whether the BoE will also stick to these comments if inflation turns out to be more stubborn. For now, however, the market seems to be content and Sterling might have scope for a temporary recovery.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.