British pound sinks as BOE members signal unwillingness to raise rates

Sterling skids on report of possible 'Brexit breakdown'

In a speech the following day, external MPC member Gertjan Vlieghe - considered one of the most dovish members of the council - told his audience that "the evolution of the data is increasingly suggesting that we are approaching the moment when Bank Rate may need to rise.as early as the coming months".

The rise in September signifies that inflation in the quarter has exceeded the Bank of England's forecast of 2.7 percent in the third quarter, made at the time of the August Inflation Report. However, the headline inflation move was not matched in the RPI, with the annual rate here holding at 3.9 percent in September, slightly weaker than consensus expectations.

The Bank of England's two new interest rate-setters said on Tuesday they were not ready to vote to raise rates in November, raising some questions for investors about when the BoE (Shenzhen: 000725.SZ - news) would make its widely expected first hike in more than a decade.

Some market watchers think the bank will hike rates form their current record low of 0.25% to 0.5% at its upcoming meeting in November, in what would be the first increase in borrowing costs in nearly a decade. "Today's release has all but rubber stamped a rate hike from the central bank at their next meeting", said David Cheetham, chief market analyst at retail forex broker XTB.

The expected rise in rates comes despite signs that the British economy is faltering - it is growing slower than any other Group of Seven industrial economy this year - and that inflation is expected to ease back down in coming months.

Cher Will Join Meryl Streep for Mama Mia Sequel
She also claimed to have gone through "several" dance numbers. " Mamma Mia: Here We Go Again! " hits theatres July 20, 2018. Many stars of the original film are set to return, including Meryl Streep , Pierce Brosnan and Dame Julie Walters .

The 15% or so drop in the pound against a range of currencies has ratcheted up the cost of imported goods such as food and energy.

The employment report also showed that the United Kingdom unemployment rate held steady at in the three months to August, the lowest level in 42 years.

BOE deputy Governor Dave Ramsden was answering United Kingdom lawmaker's questions in a parliamentary committee, alongside new external BOE policy setting member, Silvana Tenreyro.

The pound slid lower against the dollar on Wednesday after the latest United Kingdom jobs report showed that, tempering expectations for an interest rate hike by the Bank of England.

Also, there is a belief that the bank will lose credibility if once again it puts the market on notice for a rate hike and fails to deliver. Contributions of 200 words or more will be considered for publication.

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