"Bank of England Governor Andrew Bailey is being coy about what will happen at next week’s MPC meeting.

This is firstly due to the fact that he was accused of misleading markets in the run-up to the most recent meeting and more importantly, not only is he unable to gauge the mood of his colleagues, but he is unsure of his own vote.

There are merits to trying to take back control of inflation by raising interest rates, a move that would signal the end of historically dovish monetary policy but could see several areas of the economy suffer.

Equity markets would most likely correct, the property market would experience a significant slowdown, although it has weathered the withdrawal of Government support well. Should the logistics issues and shortages continue well into the first quarter, such a move may now be considered premature.

Prime Minister Boris Johnson is facing further pressure from within his own Party over revelations about last year’s Downing Street Festivities while the country was in full lockdown. The critical issue of whether he knew what went on under his own roof remains unclear.

"

Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.