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Dutch International: It is expected that the inflation data will support the cautious interest rate cut stance of the Central Bank of England
According to Chris Turner, an analyst at Dutch International Group, the pound is expected to strengthen as the UK inflation data to be released later this week may support the cautious approach of the UK Central Bank towards interest rate cuts. The service sector inflation is expected to remain above 5%, which means that the UK Central Bank may continue to adopt a gradual easing policy. The weaker-than-expected UK economic rise data released last Friday prompted the euro to pump against the pound, reaching a two-week high of 0.8335.