Sterling Extends Losses After BoE Inflation Report
August 13, 2008
The BoE inflation report suggested that British inflation will fall below the central bank's 2.0% target within two years if interest rates are held at 5.0%, however, CPI is expected to spike close to 5.0% before peaking as the effects of higher food and fuel prices. Growth is expected to be "broadly flat over the next year or so," before quickly rebounding to 2.4% in two years time. With the 12-month outlook for the UK looking extremely bleak the Pound declined upwards of 2.0% against the U.S. dollar.