
September’s headline CPI rose to 3.5%, while firmer UK activity and employment data also underpin Lee Hardman at MUFG’s expectation that the BoE will begin its rate-hiking cycle in November. Following the energy price cap reset, MUFG expects inflation to exceed 4.0% next year. These developments are viewed as supportive of further near-term gains for the Pound.
"We continue to expect the BoE to begin their hiking cycle in November after recent stronger economic data for both activity and employment alongside comments from BoE officials including Governor Bailey."

"The release of the latest UK CPI report this morning should seal the deal for a hike next month."
"The report revealed that headline inflation jumped to 3.5% in September up from 3.1% in August."
"We expect inflation to pick up further rising above 4.0% next year once the energy price cap is reset higher again."
"The latest developments remain favourable for the pound to strengthen further in the near-term."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)