15 Jul 2014
UK CPI, well more than expected - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained the compelling CPI data for the UK today that has seen sterling rocket.
Key Quotes:
"The market had expected a small uptick from the May 1.5% pace of CPI. The 1.9%, however, and 2.0% core, well more than was expected."
"Core CPI rose to 2% from 1.6%. The price pressures reinforce the fundamental argument for sterling which is that the BOE will be the first major central bank to lift rates."
"In fact, the stronger than expected consumer inflation report will fan speculation of votes, that is a dissent, in favor of a rate hike at the next BOE meeting (August 6-7) , and to be followed by a more hawkish Quarterly Inflation Report (August 13)."
Key Quotes:
"The market had expected a small uptick from the May 1.5% pace of CPI. The 1.9%, however, and 2.0% core, well more than was expected."
"Core CPI rose to 2% from 1.6%. The price pressures reinforce the fundamental argument for sterling which is that the BOE will be the first major central bank to lift rates."
"In fact, the stronger than expected consumer inflation report will fan speculation of votes, that is a dissent, in favor of a rate hike at the next BOE meeting (August 6-7) , and to be followed by a more hawkish Quarterly Inflation Report (August 13)."