GBP review

The Pound gave back some of the gains from the last few days after Bank of England cut its forecast for British economic growth for 2015 to 2.4 percent from 2.9 percent. BOE also expects inflation to move to its target level of 2 percent in two years from its current level of zero. Inflation is expected to pick up later this year and the MPC expects the falls in commodity prices to be relatively short lived and therefore looks through them for setting policy. 

In UK there are some signs of wage push inflation as Average hourly earnings increased by 2.2 percent which is the highest since in the expansionary phase post the recession. The unemployment rate dipped lower to 5.5 percent which combined with higher wages and low inflation should increase purchasing power. 

The only concern is that the BOE has stated that the jobs being created are the wrong type of jobs, with more low-skilled, low paid employment rather than skilled roles.