Bank of England made a statement before that the rising inflation Is just temporary. However, two of 9 MPC members, Dave Ramsden and Michael Saunders, said something. 

They create an opinion where the obligation purchase program in this pandemic era must be ended soon. Based on the BOE meeting minutes, those two members have a reason. 

They have been seeing the increasing proof from several indicators of the cost and inflation. Those are for both, domestically or globally. 

That is why; the inflation pressure is probable to stay in a high level. This thing support the market to expect that if the BOE interest rate will increase at least from March 2022.

GBP / USD is Supported by the Risk On

It is clear that the committe assessment about how big the problem created by the inflation increase has been divided. However, there are so many obstacles to face. 

It is especially for this cold season and that is why; the economy experts think that the interest rate increase is impossible to be done. That is at least until the second quarter of 2022.

Poundsterling is rising for almost one percent after the monetary policy announcement made by the BOE. When this nees was written, this pair continues to increase and sold around 1.3738.

The 7 – 2 voice result is the beginning of the moving to the higher interest rate. That also increases a possibility that the QE may be ended earlier than the expectation. 

The Central Bank Statement is Hawkish

The statement gave by the Central Bank is quite hawkish. An analyst from the Mizuho Bank said that the Pound strengthening can be seen further and longer in the future. 

Besides that, there is also a possibility that the rate hike will rise as well. The pound strengthening was also caused by the awakening risk interest.

The concern about the risk when Evergrande failed to pay the debt is fading right now. It is especially after the PBoC objects the added fund to the China’s banking system. 

This situation makes the stock market wakes up and the US dollar as a sage haven market is weakening. However, the things may be different in the future based on several conditions. 

The Oil Prices Update

The cold season will be ended soon and it makes the oil prices are moving. The cause is that sentiment which makes the price is closed higher for five weeks in a row. 

That was happened after getting close to the three-year highest level during that session. The combination of the US oil production is back after the Ida storm happened last month. 

It comes together with the less stock of fuel for this cold season. Both of them are creating the really bullish situation for the earth oil market and the natural gas.

The West Texas Intermediate which is sold in New York was closed higher by 68 cent or 0.9% in $73.9 per barrel. That becomes the reference for the United States oil. 

BRENT Also has the Same Trend

Meanwhile, the BRENT crude oil is traded in London and becomes the global reference. It was traded by having 84 cent increase or 1.1% higher in $78.09. Last week the increase was higher. 

That was for about 3.7%. For your information, this is the fift week increase for the wti and BRENT. It means that both of them have been increasing by 50% this year. 

At the beginning of the session, WTI reached it’s peak in $74.27 where that was the highest since October 2018. Meanhile, WTI reached $78.24 where they have the same trend. 

This positive progress have been happened since at the beginning of the year. However, it became higher in August amidst the concern of the COVID-19 infection delta variant.