The pound is strong against the euro and the dollar this morning after Governor of the Bank of England, Andrew Bailey, gave an indication that a rate hike is on the horizon.
Speaking yesterday, Bailey acknowledged that while the recent jump in inflation is transitory, the energy crisis would keep it higher for longer. He then went on to add, “We at the Bank of England have signalled, and this is another such signal, that we will have to act.”
Bailey is due to give another speech at lunchtime tomorrow ahead of inflation rate data on Wednesday. Retail sales, consumer confidence and PMI data will also be released on Friday.
