EUR/GBP may correct a bit lower on the back of some hawkish BoE rate expectation repricing – ING

Sterling is trading higher after the release of UK inflation figures for September. Economists at ING analyze GBP outlook.

Slight CPI surprise not enough for November hike

UK inflation figures for September came in slightly higher than expected. Headline CPI grew 6.7% YoY like in August, while core slowed marginally from 6.2% to 6.1%. We believe that, despite marginally beating consensus, there is probably nothing in this inflation report that would push the Bank of England into another hike in November.

EUR/GBP may correct a bit lower on the back of some hawkish BoE rate expectation repricing today but is then probably heading higher into the BoE meeting as we expect a hold.