Bank of England rate rise likely to be insufficient to control inflation Sterling under pressure

On Wednesday (Oct 19), / rose, temporarily trading at 1.1345, up 0.15%.

Economists at Commerzbank believe it may be difficult to control inflation by raising interest rates and expect the pound to remain under pressure.

In the event of a deeper recession than has so far been assumed, markets will question whether the Bank of England will really stick to its restrictions;

Moreover, the Bank clearly still wants to show that it is thinking about the bond markets and the Treasury by delaying its quantitative tightening (QT) programme.

From a technical point of view, GBP/USD last week found a decent support around the 50% level where Fibonacci recently recovered from all-time lows.