Analyst: Single data difficult to change the UK Central Bank's tendency to cut interest rates, British Pound hard to maintain its rise.

Jin10 data reported on August 20, Monex Europe analysts stated in a report that after the UK released inflation data that was higher than expected on Wednesday, the pound may struggle to maintain its appreciation momentum. The analysts noted that a single data point is unlikely to significantly change the Central Bank of the UK’s inclination to cut interest rates in the context of a weak labor market. “We still expect that growth resistance and the upcoming fiscal tightening will force the Central Bank of the UK to cut interest rates again later this year, which will make the pound more sensitive to external factors and the risks will clearly skew to the downside.” The UK’s annual inflation rate rose to 3.8% in July, up from 3.6% in June, and exceeded market expectations of 3.7%.