In the Asian session on Thursday (June 8), the latest price of GBP/USD was 1.2447, and the opening price was 1.2437. Britain will experience the highest inflation rate of any advanced economy this year, with headline inflation expected to be 6.9% in 2023, above the 6.6% average.
UK economist Paul Dales said: “Increasing evidence that price pressures are domestically generated has pushed up interest rate expectations. We agree with the market that rates will rise further and have revised up our forecast for peak interest rates They raised interest rates by 75 basis points, from 4.50 percent to 5.25 percent. Rates won’t start to fall until the second half of next year.” The pressure is on the Bank of England, which raised rates by another 25 basis points in May, bringing the benchmark rate to 4.5 percent. At the time, the central bank recognized that inflation in the first quarter of the year was “higher than expected”, largely due to higher food prices.
