BoE’s Greene says inflation persistence a greater threat in the UK than the US

• Markets now expect the Bank of England will cut rates earlier and by more than the Federal Reserve this year
• UK services inflation remains much higher than in the US
• Higher inflation expectations have translated to higher pay growth, by metrics now between 6-7 per cent in UK
• Rate cuts in the UK should still be a way off as well

For context, markets are pricing around a 60% chance of a rate cut by June for the Bank of England.

This article was written by Arno V Venter at www.forexlive.com.