As predicted, the pound saw some volatility around lunchtime yesterday after ‘Super Thursday’. This morning, sterling has strengthened against the euro and is still strong against the dollar.
In its latest monetary policy meeting, the Bank of England maintained interest rates but gave off a ‘hawkish tone’. The BoE gave hints of being concerned with medium-term inflation risks after stating that inflation could hit 4% this year, double the target of 2%. The BoE suggested that ‘modest tightening’ of policy might be needed.
House prices have increased yet again, up by 7.6% in July, however, the rate of growth appears to be slowing. This suggests that the market may be cooling.
