The Bank of England breathed a sigh of relief this morning as the latest UK Inflation print (Dec) came out in line with analyst forecasts, seeing the yearly figure drop by 0.1% (3.1% vs 3.0%).
With Inflation at six-year highs last November, Governor Carney’s monetary play to hike rates the month prior may have finally started to filter into the markets. Although the latest figure may not bode well for the MPC ‘hawks’ that called for further hikes in the short term, the road to the 2% target the bank set out in years past will be a long and unpredictable one as Brexit trade negotiations will continue to weigh heavily on UK growth and sterling based cross currencies.

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