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BoE is stuck between a rock and a hard place – Yohay Elam
The UK economy has been suffering of late as the larger-than-expected drop in Q4 GDP as well as other unfavorable data show. Yohay Elam, Analyst at Forex Crunch, suggests that the BoE should remain on hold in February, with a slight possibility of a further QE expansion.
According to the analyst: “The recent drop in the pound reflects the weakness, but isn't enough to allow exporters to benefit in a significant manner. On the other hand, the weaker pound could push prices of imported goods higher, while inflation is still too high. All in all, the BOE is stuck between a rock and a hard place.”
