The pound is under pressure against the euro and the dollar this morning ahead of a speech from Governor of the Bank of England, Andrew Bailey.
Weakness against the dollar is largely due to strength from the greenback, which was given a boost after the Federal Reserve indicated that it would impose an interest rate hike sooner than initially expected.
During his Mansion House speech, investors will be looking out for any comments from Bailey on interest rates and the future of monetary policy.
The Bank’s outgoing Chief Economist, Andy Haldane said yesterday that inflation could rise to 4% over the coming months and that the economy is at risk of ‘overheating’. However, it could be said that other officials don’t share the same view, as Haldane was the only person in the Monetary Policy Committee to call for a reduction to quantitative easing in the June meeting.
