Pound Stronger After BoE Refrains from Action Again

The Great Britain pound rallied today against its major rivals following the decision by the Bank of England to leave its monetary policy unchanged. Such decision was widely expected as the central bank did not make any changes to the policy since 2009.

The BoE announced today:

The Bank of England’s Monetary Policy Committee at its meeting on 8 May voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

As usual, the statement was very brief, and traders should wait for minutes of the meeting to understand the way of thought and plans of Britain’s policy makers. The sterling rallied after the announcement, though the currency has been already strong after Prime Minister David Cameron’s Conservative Party won a majority in the parliamentary elections last week.

GBP/USD rallied from 1.5443 to 1.5511 as of 13:13 GMT today following the drop to 1.5393 earlier during the current trading session. EUR/GBP dropped from 0.7249 to 0.7191.

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