Monetary Policy Report - May 2022 | Forex Factory

  • Monetary Policy Report - May 2022

    From bankofengland.co.uk

    The rate of Inflation is the measure of how quickly prices have gone up. In March, prices had risen by 7% compared to a year ago. That is well above our 2% target. Higher prices for goods is one of the main reasons for this. As economies around the world opened up after Covid restrictions eased, people started to buy more goods. But the people selling these have had problems getting enough of them to sell to customers. That led to higher prices – particularly for goods imported from abroad. Higher energy prices have also played a big role. Large increases in oil and gas prices have pushed up petrol prices and ... (full story)

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Bones
May 5, 2022 8:01am
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They're not moving fast enough with rates while Richie keeps very high taxes on rapidly rising energy, it's a recipe for disaster.
Forget the green tax, energy usage (=GDP) will fall through the floor, no worries dishy rishi...you're history anyway along with bojo.
How you stop this is have interest rates above inflation while tackling energy head on.
When you watch Bailey he goes on about hindsight when you don't need hindsight with 101 economics so out of whack. You're way out mate and you must know it.
Dim wits are running the country.
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DaJoWaBa
May 5, 2022 7:49am
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Quoting KimKim23
I think the reason why gbpusd has gone down is due the sentiment that BOE may not increase rates in the near-term as aggressively as the FED so the markets are jumping back to the usd
Indeed. The FED rate is at 1% and BOE at 1%. The USD is the reserve currency and the GBP is not. BOE foresees inflation dipping quickly in less than a year due to the supply constraints not getting worse and prices probably not increasing so much more than they have already. The energy prices are sucking the life out of the rest of the economy, which will recede, in all probability. There ARE signs of that about already in the UK and not YET in the USA. It's all about relativity.
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fxsport
May 5, 2022 9:32am
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Quoting DaJoWaBa
{quote} Indeed. The FED rate is at 1% and BOE at 1%. The USD is the reserve currency and the GBP is not. BOE foresees inflation dipping quickly in less than a year due to the supply constraints not getting worse and prices probably not increasing so much more than they have already. The energy prices are sucking the life out of the rest of the economy, which will recede, in all probability. There ARE signs of that about already in the UK and not YET in the USA. It's all about relativity.
I'll take it one step further -

Market wanted a 0.5% increase - Market got a 0.25% increase = Temper Tantrum = SELL!!!!!!
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UKBanter
May 5, 2022 8:27am
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Absolutely bonsey the phrase "behind the curve" I have heard sooo many times but only recently I understand its meaning.
As you know I aint the sharpest.

I genuinely think the policy is to marginally raise to look like they know what they are doing but secretly hoping, yes, "hoping" inflation goes away.

After all thats what they did last time. And it didnt F'in work then either!!!
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marketchaos
May 5, 2022 6:40am
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Increased prices in the market place are not consumer driven but a supply side problem caused by higher energy and fuel prices which then filter down the manufacturing process. Raising rates won't solve that problem. It seems to be the only weapon the BOE seems to have in it's armoury. It's like beating a donkey with a straw!!
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jordanvic
May 5, 2022 6:46am
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reading through The report it sounds really bad for GBP. if BoE thinks its gonna get that bad then the reality is its going to be far worse for Euro area. just my thoughts
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KimKim23
May 5, 2022 6:55am
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I think the reason why gbpusd has gone down is due the sentiment that BOE may not increase rates in the near-term as aggressively as the FED so the markets are jumping back to the usd
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marketchaos
May 5, 2022 6:35am
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BOE has warned that there is a possibility of a recession and inflation could top 10%. One reason why reason why GU dropped
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kostas1
May 5, 2022 6:47am
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Why does it feel like cleaning stops below 1.24 to shoot up later?
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Jolita
May 5, 2022 5:07pm
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We knew for months that inflation and rates will increase, market makers blowing boubles and taking profits.

Stagnation faze kicked in and sadly will get worse -
"a period of economic stagnation
lack of activity, growth, or development" .
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Chancy
May 5, 2022 10:25am
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Quoting jordanvic
reading through The report it sounds really bad for GBP. if BoE thinks its gonna get that bad then the reality is its going to be far worse for Euro area. just my thoughts
In agreement , some of the statements have little favourable outlook . Inflation is hitting the fan alright in the UK for the time being . Especially with gas , petrol and diesel .
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MaverickCT
May 5, 2022 7:15am
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The technical's were very clear, it was going down, and the same goes for FOMC last night
From a fundamentals point of view (which I don't follow) I believe one should look to the GDP for an explanation
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fxsport
May 5, 2022 9:31am
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Quoting c0ldsun
You selling, I'm buying!
Sorry about that!
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tush1822
May 5, 2022 6:49am
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GBP should be in Exotic list, too much intervention,
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DaJoWaBa
May 5, 2022 9:51am
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Quoting fxsport
{quote} I'll take it one step further - Market wanted a 0.5% increase - Market got a 0.25% increase = Temper Tantrum = SELL!!!!!!
More then likely.
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aquavox
May 5, 2022 8:47am
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Well , inflation in NZ in 1987 was 19%, my mortgage was 25.5% , I wasn’t the sharpest then either .
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Shumba2021
May 5, 2022 7:19am
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Will be riding this wave to 1.23571.
I could wrong
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Shumba2021
May 6, 2022 4:18am
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@c0ldsun i have been riding this wave since 01 June 2021.
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17607
May 5, 2022 6:19am
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Buy the rumor sell the news......
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17607
May 5, 2022 6:26am
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Bucket shops do so to plunder retailers money
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17607
May 5, 2022 6:36am
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Quoting Glifx
News is Stong For GBP......but Market is down
buy the rumor sell the news
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Geriliel
May 5, 2022 9:07am
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Quoting jordanvic
reading through The report it sounds really bad for GBP. if BoE thinks its gonna get that bad then the reality is its going to be far worse for Euro area. just my thoughts
And eu wants embargo oil from Russia, my bias is short on euro
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MaverickCT
May 5, 2022 7:51am
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I seem to see more short, in fact quite a bit more. Will see when it settles
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elanjaelani
May 5, 2022 6:24am
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WTF...GBPUSD lost 100 pip....it's exectly the same with the FED decision for direction....
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elanjaelani
May 5, 2022 6:57am
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Most traders got the stoploss today...
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yoko
May 5, 2022 6:27am
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why GU down?
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Ftmofx
May 5, 2022 6:22am
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buy gbp
Ftmofx
May 5, 2022 6:32am
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Fill in the gaps
Glifx
May 5, 2022 6:33am
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News is Stong For GBP......but Market is down
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Ftmofx
May 5, 2022 6:37am
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GBP will reverse soon. Wait and see the condition because news is good for GBP
c0ldsun
May 5, 2022 7:38am
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You selling, I'm buying!
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Ftmofx
May 5, 2022 7:46am
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Quoting c0ldsun
You selling, I'm buying!
I am also buying
ALthon
May 5, 2022 7:49am
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I don't really get why it went down since the news for GBP is bullish. But im just riding with it now and it just keeps going down.
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c0ldsun
May 5, 2022 9:35am
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Quoting fxsport
{quote} Sorry about that!
Why? +105 pips GBP/NZD
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