The pound has strengthened further against the euro and is still strong against the dollar this morning despite dovish comments from Bank of England official, Silvana Tenreyro.
Speaking yesterday, Tenreyro indicated that the BoE shouldn’t rush into raising interest rates, suggesting that the current inflation drivers, such as rising energy prices and supply chain problems, are temporary and “should fade quickly”.
With little data to go on, all eyes are on the UK’s autumn Budget tomorrow.
It has already been revealed that the national living wage is set to rise to £9.50 an hour, up from the current rate of £8.91, and public sector workers will see a pay increase. Chancellor Rishi Sunak will confirm this during Wednesday’s Budget, as well as the reports of a cut to VAT on energy bills and changes to alcohol tax and capital gains tax.
