Bank of England Inflation Letter is published if inflation deviates by more than 1% from the mandated target rate of 2%. In this case, the Governor of the Bank of England is required to write an open letter to the Chancellor of the exchequer and to explain the reasons for the actual situation, as well as measures taken to get inflation back to the target value.
Publication of the BoE inflation letter is an indication of unfavorable conditions for the pound sterling and may have a short-term negative impact on GBP quotes.