British Pound to Indian Rupee (GBP/INR) Exchange Rate Forecast: BoE, Indian Inflation, Industrial and Manufacturing Production in Focus
The British Pound to Indian Rupee (GBP/INR) exchange rate softened in Thursday’s European session after Indian Industrial Production and Manufacturing Production figures came in higher than economists had forecast.
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Indian Industrial Production jumped from 1.7% to 2.6% on the year in January, defying economists’ predictions to fall to 0.73%. Meanwhile, Manufacturing Production grew from 2.1% to 3.3% rather than slipping to 0.19% in line with forecasts.
Reserve Bank of India (RBI) Inflation in Focus
Consumer Price Inflation also increased, which surprised some economists who had expected the recent decline in wholesale prices to weigh heavily on the ecostat. The inflation rate rose from 5.11% to 5.37% in February on the year while economists had predicted a slip to 5.0%.
The International Monetary Fund (IMF) has suggested that Indian inflation is likely to remain at 6.0% from April onwards over the next year and the Reserve Bank of India (RBI) will need to keep a close eye on monetary policy.
The IMF stated: ‘The evolution of the monetary policy stance should continue to be data dependent, while recognises [the] uncertainties regarding the strength and lags associated with monetary transmission mechanism. Nonetheless, the authorities should continue to stand ready to tighten the stance if inflationary pressures gather pace, particularly given the large upside risks to inflation.’
Meanwhile, the British Pound was offered a little support against other currency majors when UK Trade Balance stats printed favourably.
The UK trade deficit shrank from -£2.14 billion to -£616 million in January, a much more favourable figure than the -£2.30 billion forecast.
The British Pound to Indian Rupee (GBP/INR) exchange rate could fluctuate further in Thursday’s trading with Bank of England (BoE) Governor Mark Carney speaking in Sheffield.
As the Bank of England has recently become more hawkish as the time to hike interest rates draws closer, any upbeat statements from the central banker could send the British Pound rallying.
British Pound to Indian Rupee (GBP/INR) Exchange Rate Forecast
The British Pound to Indian Rupee (GBP/INR) exchange rate is likely to experience movement on Friday with the release of UK Construction Output figures. However, BoE representatives are also speaking throughout Friday’s session and could therefore be another factor to influence GBP/INR movement.
The Indian Rupee to British Pound (INR/GBP) exchange rate is trading at 0.0107. The British Pound to Indian Rupee (GBP/INR) exchange rate is trending in the region of 93.5670.