# Sterling depreciation will increase pace of tightening, BoE says - Central Banking

> The Bank of England said UK inflation will overshoot its 2% target for longer as sterling's depreciation passes through to import prices. It held rates at 0.25% and argued that raising rates would not offset the currency-driven inflation.

- Date: 2017-05-11 · published 2017-05-11T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/71250-sterling-depreciation-will-increase-pace-of-tightening-boe-says-central-banking
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Persistent import-price inflation squeezes UK consumer spending and sterling's purchasing power for imported feed. The price impact on grains and oilseeds is limited.

## Read by commodity

- GBPUSD: neutral

## Sources

- centralbanking.com: https://www.centralbanking.com/central-banks/monetary-policy/monetary-policy-decisions/3238141/sterling-depreciation-will-increase-pace-of-tightening-boe-says

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.