Pound Falls Further on BOE Meeting Outcome

The pound declined for another day after policy makers agreed unanimously to extend stimulus in order to rescue the faltering British economy from the longest recession in the last decades, decreasing attractiveness for an already weakened currency in foreign-exchange markets.

The U.S. dollar traded near a two-month high versus the British pound after this month’s central bank meeting talks published today indicated that all policy makers opted for extending its bond purchase program to revive the nation’s economy, despite admitting it has not been as effective as previously expected. Another decision from the Bank of England did not surprised traders as benchmark interest rates in the country remained at an all time record low of 0.5 percent, since the economy does not provide conditions even for speculative movements suggesting rate hikes in a foreseeable future.

The outlook for the pound depreciated as quantitative easing measures taken by the Bank of England has been ineffective, and the country’s resilience has been disappointing not only for traders and analysts, but for the population as well, setting pound-priced assets as one of the least appealing ones among the 6 top traded currencies.

GBP/USD traded at 1.5956 as of 12:58 GMT from a yesterday’s price of 1.6055. EUR/GBP climbed up to 0.8948 from 0.8895.

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