The Bank of England has, as expected by most analysts, decided to stay the course on interest rate policy and the current asset purchase program. The news has led to very little change on the Forex market, with the pound still weak against the euro, but gaining against the US dollar.
Today’s Bank of England announcement was to keep the interest rate at 0.5 per cent, while keeping the asset purchase program steady at 375 billion pounds. After the announcement, gilts fell, and the pound remained relatively stable. Weakness against the euro continues from the pound, although the pound is gaining against the US dollar.
Pound has had some difficult times. Indeed, many Forex traders are still testing the currency for weakness. The UK economy has been growing slowly, but inflation has remained a concern nonetheless. The Monetary Policy Committee has been walking a fine like for a while now.
The latest announcement from the BOE hasn’t changed much, but Forex traders will be looking for clues about what the MPC might do next month, as well as paying attention to economic data to see if there are changes.
At 15:14 GMT GBP/USD is up to 1.6099 from the open at 1.6022. EUR/GBP is up to 0.8197 from the open at 0.8154. GBP/JPY is up to 141.8915 from the open at 140.8150.
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