Bank of England (BoE) Deputy Governor Clare Lombardelli warned that high energy costs could keep inflation elevated, speaking at the Bank of England Watchers’ Conference in London on Tuesday.
Key takeaways
Balance of risks to inflation remains to the upside.
Energy shock has become more persistent.
Greater prospect of second-round effects.
The longer energy costs stay high, the greater pressure there will be on businesses to restore margins.
Conditions for persistent inflationary dynamics over the medium-term are crystallising.
Labour market is stuck in low gear.
Market reaction
GBP/USD shows little reaction to Lombardelli’s remarks, trading around 1.3425, down 0.12% on the day as the US Dollar firms before US inflation data due at 13:30 GMT.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Australian Dollar.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
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