Next week’s employment and inflation data will be key in determining the Bank of England’s next interest rate hike, which could lead to significant fluctuations in the pound, according to economists at Commerzbank on Feb. 10.
It is worth noting that given the high upside risk of inflation, the market has not yet ruled out the possibility of a Bank of England interest rate hike in March. For example, it is necessary to clarify how public sector workers’ strikes affect wages, and because the job market is still quite tight, there is a risk of a “second-round effect”. Therefore, the Bank of England can only wait for more data to fully grasp the economic situation.