GBP would like to grow. Overview for 19.04.2023
The British pound against the US dollar saw an increase on Wednesday. The current quote is 1.2451.
Inflation in Britain in March came out higher than expected, and this makes hopes for a slowdown in the growth of crediting prices fade. The CPI turned out at 10.1% y/y after being 10.4%. This is, indeed, a decline, but the forecast had been 9.8%. Base inflation remained at 6.2% y/y like in February.
The retail sales index in March was not cheerful either. It came out at 13.5% , dropping from 18.8% previously. However, the expectations had been quite ambitious, suggesting a decline to 13.3%.
The country's energy carriers remain expensive, as well as food. Taken together, this stops the Bank of England from pausing in interest rate increases to tackle inflation. There is nothing surprising in the high British inflation as the situation had been worsening gradually. While the BoE has reasons for tightening credit and monetary policy, the pound will feel support.
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