GBP/USD lifts off lows after UK CPI meets forecasts

The UK August UK CPI and RPI inflation reports have just been released. As noted in the previous update, the markets were expecting a higher rate of consumer prices last month. The data has revealed that consumer prices rose by 0.3% last month and by 3.6% on an annualised basis. That was in line with forecasts. The RPI annualised reading is slightly higher, at 3.6%. but broadly speaking this data is not likely to change any BOE voter minds that have already been made up for their decision tomorrow. The Pound has edged a little higher after this, but not yet markedly so. Interestingly the percentage odds for a BOE cut tomorrow., of 0.25% were at around 35% ahead of this data. The GBP/USD is currently trading at 1.3176