UK CPI Inflation Report To Influence BoE Rate Decision

<p><a href="https://admiralmarkets.com/analytics/traders-blog/uk-cpi-inflation-report-to-influence-boe-rate-decision"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/UK_CPI_inflation_report_to_influence_BOE_rate_decision.png" data- data- data-alt="UK inflation report is likely to have an effect on interest rates" data-height="376" data-width="800"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/UK_CPI_inflation_report_to_influence_BOE_rate_decision.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/UK_CPI_inflation_report_to_influence_BOE_rate_decision.png"></source></picture></a></p><p>Financial news reporters will be pretty busy this week as several central banks are expected to announce their interest rate decisions, with the Federal Reserve (<a rel="nofollow noopener" href="https://www.federalreserve.gov/" target="_blank">Fed</a>) once again drawing most of the attention. As the week starts, economists focus on the UK CPI inflation report and the People's Bank of China (PBoC) interest rate decision.</p><p>Commenting on the recent oil prices hikes, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said that <a rel="nofollow noopener" href="https://www.opec.org/opec_web/en/" target="_blank">OPEC</a> targets less volatility in energy markets rather than prices. He also noted that “the world could go from one type of energy crisis to another if supply chains for critical minerals aren't well planned."</p><p>Minutes from the last Reserve Bank of Australia (RBA) meeting revealed that its board believes that inflation is still too high and reiterated that further monetary policy tightening may be required.</p><div>
<h2>Table of Contents</h2>
<ul>
<li><a href="https://admiralmarkets.com/analytics/traders-blog#mcetoc_1hamau6hpdv">UK CPI Inflation August Report</a></li>
<li><a href="https://admiralmarkets.com/analytics/traders-blog#mcetoc_1hamau6hpe0">Canada Consumer Price Inflation August Reports</a></li>
<li><a href="https://admiralmarkets.com/analytics/traders-blog#mcetoc_1hamau6hpe1">China Interest Rate Decision</a></li>
</ul>
</div><h2>UK CPI Inflation August Report</h2><p>The UK CPI inflation report will draw investors’ attention as the country’s economy is near the recession threshold. Economists suggest that inflation could rise to 7.1% on an annualised basis and 0.7% on a month-to-month basis. Earlier in the year, headline inflation hit double figures, forcing consumers to reevaluate their budgets in order to cover their needs. The BoE has also scrambled to reduce inflationary pressures by increasing interest rates.</p><p>The Centre for Economics and Business Research (<a rel="nofollow noopener" href="https://cebr.com/" target="_blank">CEBR</a>) said in a report that inflation figures remain too high. CEBR analysts wrote that “core inflation and services inflation are not yet moving in the right direction, which suggests that wage pressures are still feeding through into higher prices. The recent sharp uptick in global oil prices should be a warning — any potential new exogenous shock could quickly change the picture and reignite an inflationary spiral.”</p><h2>Canada Consumer Price Inflation August Reports</h2><p>Later today, the Bank of Canada (<a rel="nofollow noopener" href="https://www.bankofcanada.ca/" target="_blank">BoC</a>) and Statistics Canada will publish their individual CPI inflation report for the month of August. Both reports are forecast to show a spike in headline inflation with economists expecting the BoC suggested figure to come in at 3.8%, on an annualised basis. The BoC’s governing board has noted that inflation is still too high at 3.3% and that the downward momentum in consumer prices is not satisfactory. The BoC’s head has said that rates would be reduced when headline inflation falls to 2%.  </p><h2>Interest Rate Decision In China</h2><p>On Wednesday, the People's Bank of China (PBoC) will announce its decision on interest rates. The PBoC is likely to maintain its benchmark Loan Prime Rates (LPR) with the 1-Year LPR currently at 3.45% and 5-Year at 4.20%. It’s worth reminding, that the central bank of China disappointed market analysts in August as it delivered lower than expected hikes on Loan Prime Rates.  </p><p>The Chinese yuan’s value sank to a 16-month low against the US dollar last week. In its quarterly monetary policy report in August, China’s central bank vowed to “actively and steadily respond” to depreciation pressure on the yuan. It should be noted that China holds the largest foreign exchange reserves in the world, with some economists suggesting that it could use them to support the country’s currency.</p><p>Does trading on macroeconomic news interest you? Learn how this approach works with our free webinars. Meet and interact with experienced traders. Watch and learn from live trading sessions.</p><p></p><div><div><span>Free trading webinars</span><p>Tune into live webinars hosted by our trading experts</p><a target="_blank" href="https://admiralmarkets.com/education/webinars">REGISTER FOR FREE</a></div><div><a target="_blank" href="https://admiralmarkets.com/education/webinars"><a href="https://admiralmarkets.com/analytics/traders-blog/uk-cpi-inflation-report-to-influence-boe-rate-decision"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/img/uploads/6451109f81eed1683034271.png" data- data- data-alt="Free trading webinars" data-height="" data-width=""><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/img/uploads/6451109f81eed1683034271.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/img/uploads/6451109f81eed1683034271.png"></source></picture></a></a></div></div><p><b>This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the <a href="https://admiralmarkets.com/risk-disclosure" target="_blank" rel="noopener">risks</a>.</b></p>