BoE’s Pill: Policymakers should be cautious
The post BoE’s Pill: Policymakers should be cautious appeared com. Bank of England (BoE) Chief Economist Huw Pill spoke at an interview with Reuters in the Bank of England in London on Tuesday. He said that underlying inflation dynamics in the UK are lower than headline inflation suggests and that policymakers should be cautious about over-interpreting. latest changes in key data Key takeaways Underlying inflation dynamics in the UK are lower than headline inflation suggests. Policymakers should be cautious about over-interpreting latest changes in key data. We haven’t seen the moderation in key nominal data that we would have expected in the past. Recent private-sector surveys have presented a less bearish picture of the economy than official figures. I expect the QE portfolio held for monetary policy purposes to be wound down to a very low level.” Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people.