The pound is still trading around strong levels against the euro and the dollar this morning ahead of a light week for economic data releases in the UK.
Bank of England official, Silvana Tenreyro will speak later today and could build on comments made by new Chief Economist, Huw Pill, at the end of last week. He suggested that interest rate hikes could take place this year or next, but the question about whether to raise rates was a ‘live’ one. He also expressed concerns that inflation could rise to 1%.
Also this week, Chancellor Rishi Sunak will reveal his autumn Budget. The Budget will reportedly contain a cut to the 5% VAT on energy bills and changes to alcohol tax.
