BoE’s Bailey: Inflation will drop strongly in the next month

Bank of England’s Governor Andrew Bailey speaks in the wake of the pick up in UK inflation figures in March.

GBP/USD keeps the tight range in the low 1.2400s, fading the initial bullish move to the 1.2480 zone on the back of the ongoing bounce in the Dollar.

Key Quotes

We’re pretty much on track for where we thought we would be in february on inflation.

I expect next month’s inflation number will show quite a strong drop

Oil prices haven’t leaped as much as expected

The effect of middle East conflict is less than feared