PREVIOUS TRADING DAY EVENTS 24 May 2023

Announcements  

The 2digit inflation has finally become 1digit, specifically 8.7, according to the CPI data released yesterday, the 24th of May. This is a good sign for the Central Bank as U.K.s inflation rate remained much stronger than expected with the Bank of England to hike rates continuously, fighting a sticky 2digit inflation. 

The figure reported was higher than the 8.4 reading forecast by the central bank.

With inflation proving stickier than the Bank expected, it now seems all but certain that the Bank will raise interest rates from 4.50 to 4.75 in June and perhaps a bit further in the months after, said Paul Dales, the chief U.K. economist at Capital Economics.

The BOE Governor, Andrew Bailey, had scheduled speeches to take place during the trading day after the release. He stated that their projections show that they will meet the inflation target this year. The BOE expects a sharp decline in U.K. inflation throughout 2023. It is, however, concerned about the fact that prices are sticky and that the economy and labour market show signs of great resilience.

Source

httpswww.bloomberg.comnewsarticles20230524boegovernorsaysinflationistakinglongertocomedowninukxj4y7vzkg

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