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UK Inflation unexpectedly at 3%

Sterling edged up against the dollar and Euro this morning, continuing a modest rebound from three-week lows hit last week, as traders eyed UK inflation data for clues on when and how fast the Bank of England will raise interest rates.

Consumer price index (CPI) numbers were in at 0930 GMT and they were expected to show inflation annual inflation eased to 2.9 percent in January, from 3 percent the previous months – However, this came in at 3% – unexpectedly higher than forecasts.

The inflation figures did not have an impact on the Sterling value, we only expected rate movements if figures were positive, no one has sold off the pound on the back of it.

Last week the BoE said it expected to raise interest rates earlier and by more than it had thought in late 2017, because of the strength of the global economy and signs that British pay growth was picking up speed.

How quickly will they raise rates now?

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