In the Asian session on Sunday (April 23), the latest price of GBP/USD was 1.2441, and the opening price was 1.2443. After a string of strong data this week caught forecasters off guard, another rate hike from the Bank of England is a foregone conclusion at its May 11 meeting, with markets even pricing in more hikes.
This week’s inflation data, wage growth, consumer confidence and purchasing managers’ indexes all beat economists’ expectations, suggesting a resilient economy will keep inflationary pressures on the rise. British economist Thomas Pugh said: “I think that the rate hike in May may have been done. The data we have basically proves that inflation and the labor market have not eased as quickly as they hoped.”
UK inflation unexpectedly held in the double digits in March, according to the latest data, with key core and service sector figures reflecting domestic pressures stickier than expected.
