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Beecroft: Strong GBP is BoE's 'stealth tightening'

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GBP is at a two year high against the Euro, one pound buys around 1.27 Euros, up around ten percent on the year. The strength of the pound is a form of "stealth tightening" according to Nick Beecroft, Chairman of Saxo Capital Markets and will also ease inflation and perhaps delay any future interest rates rise. Nick has been assessing the latest Bank of England minutes which he says are more "dovish" than Governor Mark Carney's most recent speech at the Mansion House.
UK retail sales rose in June by 0.1% compared to May which is seen as another sign that the UK economy is continuing to emerge from the recession sparked by the banking crisis. Nick adds that the retail sales results show the UK economy becoming more balanced, but with "weakness" in the housing market and low wage inflation still two of the major concerns for policy makers.