Jon Cunliffe was the only MPC member to vote against a rate hike at the latest meeting. He thinks that inflation needs to be tackled, but he does not think that the Bank will have to take sustained action to prevent high inflation from becoming ingrained.? The market was pretty flat yesterday. Sterling drifted either side of 1.3125 and we opened around 1.1975 against the Euro.? There is growing market expectation that we may see a recession in the US.?The market fears that projected rate hikes of about 2.5% may well slow the economy to the point of recession.? We have the latest Fed minutes are due out tomorrow. The market will be looking for clues to confirm that a 50bp rate hike does indeed look likely and whether they will start to reduce the Fed balance sheet next time they meet on May the 4th. If policy does looks likely to diverge further from the UK and eurozone, we could see the dollar index move closer to the 100 level. ? Yesterday it topped out at 99.10 and EUR/USD opens around 1.0970. #Finance #FxPlew #news
Director EM/G10 Fx / Markets & Fx Specialist
2 年Sadly Cunliffe is as deluded or even more so than Bailey given he voted no rate rise . Another one that has no clue how much things cost and needs to go to specsavers .