forex news - British Pound position depending on the Bank of England

forex news - British Pound position depending on the Bank of England

Throughout November, the UK consumer price index (CPI) dropped less than anticipated at a rate of -0.1 %, whilst the yearly rate calmed to 4.1 % from 4.5 %. Whilst this is still way over the Bank of England’s 2.0 % objective, BOE Governor Mervyn King stated this morning that CPI is going to probably reach it throughout the beginning of 2009, but will drop significantly low toward the end of the year, and maybe even lower than 1 %. Mr. King as well stated that the Monetary Policy Committee (MPC) is going to keep on taking any actions are necessary to make sure that the viewpoint for inflation stays in the same level with the Government's 2 % objective.