In the Asian session on Monday (May 29), the latest price of GBP/USD was 1.2335, and the opening price was 1.2341. Sterling fell for the week, falling 0.77% to 1.2349 after data showed British consumers increased spending in April.
The former hawkish rate-setter at the Bank of England has warned that rates need to soar to 6% to rein in inflation, a level the central bank sees as painful for households and businesses. Chief economist William Butte expects interest rates to peak at “no less than 6%” and “a policy rate of 4.5% is simply not going to work.” HSBC said the UK’s inflation crisis is grim, with retail sales data a bright spot. Senior economist Chris Hare said UK retail sales data for April was mildly positive as consumer confidence gradually improved after a difficult winter.
