The Bank of England is adamant that inflation is too far above its 2% target to risk a premature cut, and data this week, if in line with expectations, is unlikely to move the dial.
At 5.25%, UK rates are among the highest in the Group of 10 (G10) major economies, bar those in New Zealand and the United States, at 5.5%.
dollar is very much in the driving seat of the foreign exchange market right now, but there is another currency reeling in yield-hungry traders just as the Federal Reserve and a raft of other central banks prepare to cut rates: the pound.īritish consumers, businesses and politicians might be feeling gloomy about the prospect of UK interest rates remaining high for quite a bit longer than elsewhere - not least because inflation has proven much stickier.īut for currency traders, it is a boon.
