BoE will act forcefully to combat inflation | 23 June 2022

23 June 2022, GBP/USD

GBPUSD trading plan:

The Bank of England will "act forcefully" to combat rising prices, British finance minister Rishi Sunak said, as data showed UK inflation had hit a new 40-year high of 9.1% in May. "Firstly, the Bank of England will act forcefully to combat inflation," he said. "Secondly, the government will be responsible with borrowing and debt so we don't make the situation worse and drive-up people's mortgage rates any more than they're going to go up. Sunak echoed language used by the Bank of England last week after it raised interest rates - although the central bank's line was more conditional, saying it would "if necessary, act forcefully". He defended a planned pension increase in line with inflation, amid criticism that the government was at the same time urging below-inflation increases for workers. This is a positive signal for the British currency.

Investment idea: buy 1.2220 and take profit 1.2285.

David Johnson
Analyst of «FreshForex» company
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