Traders Fret BOE Pause to Hurt Pound as Inflation Still a Threat
- Pound slides to six month low as BOE rate hikes grind to halt
- Investors warn of rising energy prices, strong labor market
A commuter passes the Bank of England in London, UK.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The pound slumped to a six-month low and gilts fell on worries the Bank of England is being too timid in its fight against inflation, setting the nation’s assets up for further losses.
The concern is that by keeping rates on hold Thursday, the BOE is underestimating a host of factors that still threaten to push consumer prices higher, focusing instead on softening the blow that tighter policy is having on the economy.