According to Jinshi Data, before the Bank of England announced its interest rate decision on Thursday, data showed that the UK's core inflation accelerated more than expected in August. The UK's core CPI annual rate in August rose from 3.3% in July to 3.6% in August, higher than analysts' expectations of 3.5%. The overall inflation rate remained unchanged at 2.2%, in line with expectations.
ING analyst Francesco Pesole said the data almost confirmed that the Bank of England would keep interest rates unchanged. After the data was released, the pound rose from 1.3159 to above 1.3190 against the dollar, and the euro fell from 0.8452 to 0.8432 against the pound.
