The pound clawed back some of last week’s losses yesterday, returning close to €1.17 and well over $1.35.
Bank of England governor Andrew Bailey made clear that it was lack of evidence of inflation becoming “generalised” in the economy that had made seven of the nine members of the Bank of England Monetary Policy Committee delay a rise in interest rates, but that they would act on evidence that expectations of higher inflation drive up wages.
A quiet early part of the week for data in the UK continues, with no significant data releases until Thursday, when GDP for the July to September period (Q3) will be released, along with various industrial and manufacturing numbers.
