The BoE meeting results

As expected, the Bank of England raised its key interest rate by 25 bp. to the level of 0.50%. For more details about the meeting results of the Bank of England …

Negative impact on the pound was caused by the number of the rate increase, which was 7 of 9. This indicates a low probability of the repeated increase of rates by the Bank of England in the future. These expectations were described here …

Given the low probability of higher rates in the UK in the future, the British currency is under pressure across the entire spectrum of the market. The market also has to listen to the speech of the head of the Bank of England Carney. But, probably, his tone will be soft and not containing hints for a speedy increase of the rates.

The consolidation of the GBP/USD pair below the 1.3180-1.3200 zone indicates the possibility of further decline to the support levels 1.3080 and 1.3050, which meet the October minimum and will limit further decline of the pound.

Hanzenko Anton