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GBP INR Exchange Rate Declines, BoE?s Shafik Hints at Further Easing

September 28, 2016 - Written by Ben Hughes

Pound Sterling Exchange Rate Update: Uncertainty Persists for GBP after BoE’s Shafik Mentions Further Stimulus Measures



The Pound has failed to post much of a gain against the Indian Rupee (GBP INR) today, instead fluctuating against the currency in the face of investor instability.

The latest knock to confidence in the Pound has come from BoE official Nemat Shafik, who emphasised how ready policymakers were to cut the UK interest rate again, implement further policy easing measures or do both.

In other news, the World Economic Forum (WEF) offered a mixed bag of data, by placing the UK at seventh in terms of global competitiveness but also estimated that considerable damage could be done to this measure when the UK finally leaves the EU.

Future GBP INR Exchange Rate Forecast: Confidence, GDP Data and Trade Balance Stats on the Way



Looking ahead, the next major UK domestic data to watch out for will arrive extremely early on Friday, when the GfK consumer confidence figure for September is announced. This has an ‘improvement’ forecast from -7 to -2.

Later on in the morning, the finalised Q2 GDP growth rate figures will be announced, which are currently predicted to rise on both the quarter and the year.

The week to come will open with manufacturing, construction and services PMI results from Monday to Wednesday, all of which are forecast to hit plus-50 growth figures.

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Closing off the week to come will be the UK’s August trade balance result, which is forecast to show a deficit reduction from -4.5bn to -3.1bn.

Indian Rupee News: Gains seen for INR after WEF Offers Positive Look Back on Nation’s Economic Growth



While little direct Indian domestic data has come out today, the Rupee has still managed to climb considerably against its peers, thanks to prevailing investor optimism in the wake of the WEF report.

India has been featured as a case study, with the report showing that GDP per capita practically doubled between 2007 and 2016, while 2015’s growth rates exceeded those of rival China.

Although the WEF has stated that ‘huge challenges lie ahead on India’s path to prosperity’, the news is nonetheless encouraging and serves to highlight positive policy results in action.

Indian Rupee Outlook: Governmental Data due Friday, PMI Stats Out Next Week



As with the UK, Indian data is expected to be patchy over the near-future, starting off with tomorrow morning’s MNI business sentiment figure for September. This is predicted to dip slightly.

Looking further ahead, Friday is forecast to show a rise in foreign reserves in September, as well as a deficit expansion in the government budget value for August.

Notable ecostats at the start of next week will include the Nikkei manufacturing and services PMIs over Monday and Wednesday, both of which are expected to fall close to the contraction range below fifty points.
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