13% Inflation: Are You Ready?


In the UK, the key event of the week will be the latest update from the Bank ofEngland’s Monetary Policy Committee (MPC). A sixth successive increase in Bank Rate is widely expected, but there is some uncertainty over the size of the move. Market consensus forecasts indicate another quarter-point rise, however, Heritage Pay Dealers' view is that a larger increase of 50bps should not be discounted. In addition to the interest rate announcement, it is likely that the Bank of England

will probably lift its expectation again for the near-term peak in inflation, to

around 13% by October.

Unofficial: U.S. Now in Recession

Slowing, or even falling, economic growth has been the dominant theme in market this week. That was the case even ahead of Thursday’s announcement that the US

economy had contracted for a second successive quarter in Q2. That news

prompted claims that the US was now in a ‘technical’ recession even though US

policymakers asserted that the weakness was not broad-based. However, against this background, both next Friday’s release for July, and the August report will be particularly important. Analysts expect employment growth to have slowed again.

Other important key indicators next week include the ISM surveys of manufacturing and services for July. These should provide important insights on the extent to which supply constraints are continuing to disrupt activity alongside a timely update on demand conditions.

At Heritage Pay, we specialise in high-value money transfers to emerging markets. We are particularly suited to helping individuals buying property abroad; importers paying foreign suppliers; and international investors. So to discuss how the above may affect your money transfer requirements, please contact your Currency Dealer at Heritage Pay on +44 (0) 207 117 2934 - free on WhatsApp.

None of the information in this article is, nor should be construed as financial advice. All foreign exchange transactions involve risk and you should always seek your own independent financial advice before entering into any foreign exchange transaction.

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