Posted 12/14/2023, 7:30:00 AM
Pound Rallies as BoE Holds Rates Steady, While Warning of Mounting UK Inflation Risks
- Pound hits highest level since August, climbing to $1.275 against US dollar after BoE leaves rates unchanged but 3 policymakers vote for a hike
- BoE governor Bailey says too early to consider rate cuts, but money markets still expect at least 4 cuts in 2024
- BoE acknowledges UK facing greater inflation pressures than US or eurozone; risks still skewed to upside
- ECB leaves rates unchanged; Lagarde says not time to lower guard against inflation
- UK rate hike supporters warn risks of overtightening policy have continued to build, suggesting pivot may come sooner than later