Downside room for GBP much smaller - Nomura

Analysts at Nomura explained that they believe the BoE’s lower tolerance for inflation is significant

Key Quotes:

"We believe the BoE’s lower tolerance for inflation is significant for how GBP trades in the medium term, beyond the Bank’s near-term decision. The BoE’s lower tolerance for inflation means downside room for UK real yields is now much more limited, which means downside room for GBP is also much smaller.