{"id":61990,"date":"2023-05-11T10:48:33","date_gmt":"2023-05-11T07:48:33","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=61990"},"modified":"2025-10-13T13:00:28","modified_gmt":"2025-10-13T10:00:28","slug":"boes-interest-rate-decision-in-the-epicenter","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/th\/boes-interest-rate-decision-in-the-epicenter\/","title":{"rendered":"BoE\u2019s interest rate decision in the epicenter"},"content":{"rendered":"

The USD tended to remain relatively unchanged against its counterparts yesterday as the markets mulled the release of the CPI rates for April as the year-on-year rates tended to slow down, while the month-on-month headline and core rates accelerated. On a macroeconomic level, the slight easing of the year-on-year rates was welcomed, yet the acceleration of the month-on-month rates served as a strong reminder that inflationary pressures are still simmering under the surface. The release tended to send out mixed signals which seemed to puzzle traders and tended to allow for the continuance of some ambiguity regarding the Fed\u2019s intentions, which also forced US stock markets to show mixed results for the day. Also, we note the strengthening of JPY against the USD, after the release of April\u2019s US CPI rates, but it also strengthened against the GBP and the EUR in a sign of broader strength, indicating the possibility of some safe-haven inflows given the enhancement of the market worries for a possible recession in the US economy and the US Government defaulting. The recent comment of US Treasury Secretary Yellen yesterday that a US default would produce economic, financial ‘catastrophe\u2019 may have spooked investors yesterday. It\u2019s characteristic that JPY did not weaken even as BoJ\u2019s summary of opinions for the April meeting was released showing the bank\u2019s intentions to keep its ultra-loose monetary policy settings in place. Also, on the monetary front, we highlight BoE\u2019s interest rate decision today, as the bank is expected to hike rates by 25 basis points and the market seems to have almost fully priced in such a scenario, while GBP OIS also implies that the market expects the bank to proceed with another rate hike in its June meeting. Should the bank actually deliver the expected rate hike and maintain a rather hawkish tone in its accompanying statement implying more rate hikes to come we may see the pound gaining, anything less could weaken the sterling.<\/p>\n\n\n\n

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