BOE Inflation Can Only Move GBP So Far, Says Halpenny
The pound fell even as a report showed the U.K.’s annual inflation rate accelerated more in June than economists forecast, with traders awaiting the first data that indicate the state of the nation’s economy since last month’s Brexit vote. Sterling weakened versus all except two of its 16 major peers. U.K. consumer prices climbed 0.5 percent last month from a year earlier, the Office for National Statistics said in London. The Bank of England’s 2 percent inflation target was last reached in December 2013. The IMF lowered its outlook for U.K. growth after the country voted to leave the European Union and forecast Britain’s economy will grow at its weakest pace since 2012 next year. Bank of Tokyo-Mitsubishi European Head of Global Markets Research Derek Halpenny discusses with Bloomberg's Anna Edwards and Manus Cranny on "Countdown."