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GBPUSD Perched Above $1.26; BoE’s Mann Warns Of Upside Shocks To British Inflation
Pound lacks momentum on Friday amid lack of any data in UK docket and as a firm dollar is keeping sentiments in the pair dented. GBPUSD is quoting at $1.2621, largely unchanged on the day. The pair however still holds on the psychological $1.26 levels following comments from Bank of England rate-setter Catherine Mann that she is not convinced that the near-term deceleration in UKs headline inflation will continue. Supply chain disruption from hostilities in the Red Sea could quickly feed into companies' pricing decisions, exacerbating Britain's inflation problem, she said. Mann said her decision last week to vote to raise interest rates to 5.5% from 5.25% was "not easy". Most Monetary Policy Committee members voted to leave rates on hold, and one voted for a cut.