The Pound stopped recovering. Overview for 06.01.2022

GBPUSD is still moving within the rising channel; however, the pair slowed down its growth. 

The British Pound took a break against the USD. The current quote for the instrument is 1.3513.

According to the British Chambers of Commerce, businesses in the United Kingdom are very afraid of rising inflation. The BCC recorded the biggest number of companies that are planning to raise their prices. This research is quite realistic because the survey featured over 5,500 companies. One can say that these tendencies are really harmful to the country’s economy. 

The latest statistics showed that the price surge was the highest in the United Kingdom over the last 10 years and that’s increasing the pressure on both businesses and consumers. In addition to that, energy prices and taxes in the country are also going up. 

One may assume that inflation will do nothing but boost in the coming months. in this light, the Bank of England will be very cautious in raising the interest rates. It’s very important for the British regulator to keep confidence in its monetary policy and avoid ruining the current economic recovering, which is already looking weak enough.