Bank of England Rate Hold Meets Rising UK Inflation

The Bank of England rate decision is expected to leave UK interest rates unchanged even as inflation rose to 3.1% in August. Fiona Cincotta, StoneX Senior Market Analyst, explains what the inflation mix, the expected vote split and the pace of gilt sales mean for sterling and UK yields. Core inflation and services inflation both held steady in August, and a weakening UK labor market is helping contain price pressures. Attention turns to the Monetary Policy Committee vote and to quantitative tightening, where slower gilt sales leave less supply for investors to absorb. With the Federal Reserve and the European Central Bank on their own paths, relative policy matters more for the pound than Bank Rate. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share 00:00 - Rate Hold Meets Hot Inflation 00:26 - Services Inflation Holds Firm 01:14 - Markets Lean Toward No Move 01:42 - Where the Vote Split Sits 02:15 - Bond Sales Slow, Supply Thins 03:16 - Why Gilt Yields Matter Most Like and subscribe for more financial market insights. #BankOfEngland #StoneX #FionaCincotta #Forex --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social