This after core inflation rose 0.5% in the month to December. Core inflation is of particular concern to the Bank of England as it reflects domestic economic dynamics and is therefore considered to be within its remit. With core inflation running at almost triple the Bank's 2.0% target further interest rate hikes are likely in February and March. "It was the sticky core inflation number, which strips out volatile energy and food prices, which investors took notice of. Any upshift in expectations for the peak in Bank Rate could offer support for the Pound over the coming days and weeks.
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