The pound euro (EUR/GBP) is rising after losses yesterday.
The euro is falling after inflation cooled by more than expected to 1.9%, below the ECB’s 2% target level and down from 2.2% in April. This was the first time that inflation slipped below 2% since September last year.
The data supports the view that the ECB will cut rates on Thursday by 25 basis points.
The pound is rising after BoE governor Andrew Bailey told the Treasury Select Committee that he would cut rates gradually and carefully.
His comments came after the BoE cut rates by 25 basis points in the May meeting and as wage growth remains too high to be consistent with inflation at 2%.
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