The minutes of Monetary Policy Meeting will release tomorrow which is expected to clarify the latest position of MPC when they decided to keep rate unchanged despite signs of weakness in economy.
I think today jump in CPI could affect expectations from the minutes. I see it mostly in favor of sterling, at least in a short term. There is no doubt that investors don't miss time to reduce their assets in a country which increasing facing high inflation, but the problem is in finding a destination at the time that inflation turned to be a global phenomenon.
June 17, 2008
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