Pound Advances as BoE Refrains from Additional Stimulus

The Great Britain pound strengthened today after the Bank of England left its monetary policy unchanged, refraining from additional stimulus.

The BoE maintained its already extremely accommodative policy stable. The main interest rate stayed at 0.5 percent. The size of asset purchases remained at £375 billion.

Such decision was widely expected by market participants. The recent macroeconomic data suggested that the economy is improving, making more stimulating measures unnecessary. At the same time, it is too early to remove stimulus altogether.

GBP/USD was up from 1.5402 to 1.5441 as of 12:04 GMT today, trading near the highest since May 9. GBP/JPY advanced from 152.54 to 153.01. EUR/GBP fell from 0.8496 to 0.8491.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.