The UK pound is higher today, gaining ground even after the latest CPI data shows that inflation remains below 2 per cent. The news isn’t phasing the sterling, which is higher against most of its major counterparts.
The Office for National Statistics reports that CPI was at 1.7 per cent in February, following a reading of 1.9 per cent in January. The Bank of England and other policymakers aim to keep inflation below 2 per cent. There had been a couple months ago indicating that interest rates would have to be raised to keep a lid on inflation, but this latest reading seems to indicate that a rate hike won’t be needed until later.
UK pound is higher on the news, even though it means continued loose monetary policy. Politicians like Prime Minister David Cameron said the news was good, indicating that the economy is growing, but at a rate that keeps inflation from spiraling out of control. The news seems to be enough to give the pound a bit of a boost, and sterling is benefitting from better stock performances as well.
At 13:47 GMT GBP/USD is up to 1.6507 from the open at 1.6499. EUR/GBP is down to 0.8348 from the open at 0.8389. GBP/JPY is up to 169.0840 from the open at 168.6750.
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