The pound is stronger against the dollar this morning and is trading at strong levels against the euro ahead of the Bank of England’s monetary policy meeting tomorrow.
It is widely expected that the Bank will raise the interest rate to 0.5% to combat rising inflation. However, if this doesn’t materialise and decisions from officials fall short of expectations, then sterling could suffer.
The European Central Bank will also hold its monetary policy meeting tomorrow and today, all eyes will be on the eurozone’s latest inflation reading. Inflation is expected to have fallen year-on-year in January.
Meanwhile, Russian President Vladimir Putin has made his first public comments since the crisis at the Ukrainian border began. He said that the west is using Ukraine as a “tool to hinder Russia” and has accused the US of trying to draw Russia into war. Yesterday, Prime Minister Boris Johnson told Russia to “step back” from Ukraine.
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