Bank of England increases rates
- Bank of England interest rate decision, fact 0.75%, forecast 0.75%.
- The total volume of the Bank of England’s QE program, 435B fact, 435B forecast.
As expected, the UK Central Bank raised the key interest rate by 25 b.p. to the level of 0.75%. The main positive factor that strengthened the pound’s position was the number of votes for the increase in rates, namely 9 out of 9. The unanimous raise of rates in the UK indicates the bullish mood of the economy and indicators.
Also, in the Bank of England protocol, expectations of further rate hikes were noted, if the economic situation will contribute. And the Central Bank expects at least one more increase by 2020.
As a result, the British pound has rapidly strengthened across the entire spectrum of the market, but is limited by existing trends.
GBP / USD chart. The current price is 1.3100.
Read also: “5 financial advice for traders for 2018”
Hanzenko Anton
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