During the trading session on Tuesday the British pound was sold out actively.
Thus the British currency fell against the American dollar by 70 pips to the level of 1 dollar 57.7 cent.
The decline was formed due to the data released by the National office for statistics. According to the information presented the inflation rate in the country changed by some 0.1%. The inflation decelerated insignificantly and its rate is still far from the target of the Bank of England which is 2%.
Thus in April the consumer prices grew by 0.6% monthly, and by 3% year on year.
The analysts expected to see growth by 3.1%. The experts consider this inflation slowdown as a sign of the economic deceleration rather than as a result of the central bank’s stimulating measures.
Which means that the Bank of England has to continue solving the problem of high CPI.
A similar issue is faced by the European Central Bank.
Meanwhile the International Monetary Fund stated in the annual report that Britain is on the brink of a long-term economic fall, and the BOE is to make effort in simulating the economic advance.