Weak pound and forceful Fed pressure Bank of England to act big

Published by
Reuters UK

By Andy Bruce LONDON (Reuters) -With Britain’s currency sinking and the U.S. Federal Reserve poised to raise borrowing costs aggressively, Bank of England policymakers may suddenly feel pressured to announce an outsized interest rate hike of their own this week. Even though Britain’s economy shrank unexpectedly in April and there were some signs of inflationary forces in the labour market ebbing, the pound’s slide and the increasingly hawkish stance of other central banks put the BoE in a tough spot. All but one of the 56 economists polled by Reuters last week expected the BoE to raise Bank Ra…

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