The market expects the Bank of England to raise interest rates and quantitative tightening policy

The Bank of England is due to announce its decision on Thursday, and investors now see a 95% chance of a 50 basis point rate hike, a bigger hike than the previous four, as the central bank rushes to contain the surge without a sharp slowdown in the economy inflation. In the short term, if the Bank of England chooses to raise interest rates by 25 basis points on Thursday, the pound will fall. Federal Reserve policymakers continued to issue hawkish speeches on raising interest rates, which stimulated the rise of the dollar and severely suppressed the rebound of the pound. Before the two major events of the Bank of England meeting on interest rates and the US non-farm payroll data this week are clear, it may be difficult for the pound to make a new breakthrough against the dollar for the time being.

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Goldman Sachs strategists believe that the Bank of England may take stronger action at tomorrow's meeting, raising interest rates by 50 basis points to combat high inflation. It also appears that the Bank of England will say it will implement aggressive quantitative tightening at a rate of £10bn per quarter starting in October. The Bank of England is likely to raise its short- and medium-term inflation forecasts while downgrading its 2022 economic growth forecast. The Bank of England's policy decisions will remain data-dependent and will be willing to act aggressively if high inflation persists. Despite risks to growth, firm inflation and a tight labor market will support further policy tightening after this month's meeting.

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Duncan Brock, group director of the Chartered Institute of Purchasing and Supply, commented on the UK service industry PMI in July: In terms of increasing operational capacity and managing business costs, some bright spots in the data may bring some relief. This was the slowest increase in input prices since December 2021, suggesting that we are past the peak, at least in terms of inflationary pressures, and as employment levels continue to rise, jobseekers in need of work have more options. A period of relative stability is also a plus when it comes to supply chain disruptions, respondents said. However, UK markets will have to improve further after the peak of activity during the COVID-19 rebound has lost momentum to avoid a prolonged period of dissatisfaction that has filled the summer.

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The most encouraging development in July was that input cost inflation slowed sharply from the previous month, likely reflecting lower commodity prices and a gradual easing of global supply shortages. The overall cost burden rose to its lowest level so far in 2022, despite widespread reports of rising fuel bills and staff wages weighing on operating expenses. For service providers, any slowdown in inflationary pressures won't come anytime soon, as many companies report growing customer resistance to price hikes, with rising energy, fuel and staff costs being passed on to From the customer, demand falls accordingly.

Hua Chunying, a spokeswoman for the Ministry of Foreign Affairs, said that Pelosi turned a blind eye to the riddled problems in her own country, but she kept showing off and repeating those things that had been proven by countless facts to be actual lies. Her approach profoundly shows what a person who pretends to sleep is, and it also exposes the hypocrisy and ugliness of those politicians in the United States. It also fully exposes their ability to interfere in other countries' internal affairs in the name of human rights, undermine China's stability, and curb China's development. Sinister intent.

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Consumer prices in Switzerland held steady at an annual rate of 3.4 percent in July, slightly below economists' expectations and flat month-on-month, after inflation hit a 29-year high last month. However, the figure was still above the SNB's target range of 0-2% for the sixth consecutive month. The Swiss National Bank is expected to tighten policy again soon after raising its policy rate for the first time in 15 years in June. SNB President Jordan said persistent inflationary pressures meant further monetary policy tightening may be needed.