Inflation is slowing down in the short term, the Bank of England may not raise interest rates

In the Asian session on Friday (April 7), GBP/USD fell to 1.2437, a drop of 0.03%. James Smith, an economist at ING Bank, said that with the decline in inflation drivers such as high energy prices, the UK may not raise interest rates again.

“Business and consumer expectations of UK inflation have begun to ease. If recent trends in inflation and wages hold, then we see the end of the Bank of England‘s program of rate hikes,” he said. Inflation in the UK is unlikely to come down quickly in the short term, and a rate cut may be some time away. “We should not expect the BoE to start cutting rates until 2024,” Smith said.