On Friday, the British pound against the US dollar is stable. The current quote is 1.2284.
At the March meeting, the Bank of England lifted the interest rate by 25 base points from 4.00% to 4.25% per annum. In the comments, the regulator voiced its readiness to lift the rate again if the inflation pressure grows.
According to Andrew Bailey, the head of the BoE, at the beginning of summer, British inflation should fall abruptly. By the way, in February 2023 the CPI in the country sky-rocketed to 10.4% from 10.1% a month before. Bailey was a bit more optimistic than earlier. He said that in February the British economy had been on the verge of recession but by now such risks had been reduced.
In reality, the situation with prices leaves little room for being happy. Logistic chains were broken during the pandemic already, and last year the issue got even worse. Prices are growing worldwide, including on food. For Britain, this is a serious problem that can deteriorate the life quality of many households.
For the GBP, the moderate comments of the BoE were no surprise as the regulator has always been conservative.