Pantheon Macroeconomics

Best viewed on a device with a bigger screen...

3rd May 2022 18:00U.K., Daily Monitor

Sterling fell by 2% on a trade-weighted basis in April; investors are increasingly betting on a further fall.

The MPC can't be indifferent to sterling; depreciations impart a large and long-lasting boost to inflation.

But sterling's recent insensitivity to changes in rate expectations implies it can hike Bank Rate "modestly".

brexit cpi cpi inflation depreciation ECB euro fed headline rate interest rates June mpc October policy sterling u.s.

This publication is only available to UK Economic Research (Monitor) subscribers

Related Publications

Are you taking full advantage of our daily publications?

Pantheon Macroeconomics produce daily publications for U.S., Eurozone, Latin America, UK and Asia, as well as analysis on key data within a few minutes of their release.

U.S. Economic Research
Eurozone Economic Research
Latin America Economic Research
UK Economic Research
Asia Economic Research

Sign up for your complimentary trial

To start your complimentary trial, highlight the areas you are interested in subcribing to and click next.

United States


United Kingdom

China +

Emerging Asia

Latin America


Consistently Right
Access Key Enabled Navigation
Keywords for: Will Sterling Derail the MPC's Plans for "Modest" Tightening?

brexit, cpi, cpi inflation, depreciation, ECB, euro, fed, headline rate, interest rates, June, mpc, October, policy, sterling, u.s., Pantheon Macro, Pantheon Macroeconomics, independent macro research, independent research, ian shepherdson, economic intelligence