Alex Bobrov
The British CPI remained without changes in March 2017. This means that the annual rate of inflation is still 2,3%, Market Leader reports.
At the same time, the Office for National Statistics, which is the UK’s official statistics agency, indicated a base inflation slowdown over the reporting period. The Core CPI excluding foodstuffs and energy, slowed down from 2% in February to 1,8% in March. This may testify to a much more careful money-and-credit policy by the Bank of England.
On top of that, the MPC of the Bank of England voted for leaving the key interest rate unchanged while most of the committee members seem to be trying to delay the decision for as long as possible given the forthcoming Brexit.
According to BoE Governor Mark Carney, the central bank is going to try and balance the interest rate expectations, which may go both ways in the future.
As the British economy keeps on losing trust of international investors, British households haven’t seen any considerable income growth so far. This may slow down the inflation even further, while an inflation slowdown may lead to a weaker pound.
In the meantime, Masterforex-V Academy reports that the British pound is trading at 1,2499 against the US Dollar.
Alex Bobrov
