Bank of England meeting results - Ester Holdings

Bank of England meeting results

  • Total Bank of England QE program (Nov), fact 435B, forecast 435B.
  • Interest rate decision (Nov), fact 0.75%, forecast 0.75%.

Despite maintaining the key interest rate unchanged and the stimulus program at the same level, the British pound was under the pressure across the market. The reason for this was a shift in voting power of the bank members – 2 votes for rates cut of 9. This is regarded as a signal to reduce rates in the future.

Fig. 1. Bank of England interest rate chart

As a result, the British pound accelerated the decline on the possibility of  rates cuts in the UK. In addition to signals about lower rates, the Bank of England government canceled a slowdown in the UK economy amid uncertainty over Brexit.

As a result, the GBP/USD pair accelerated the decline and updated the low at 1.2810-00, dropping to the lows of the last three weeks and accelerating the decline, which corresponds to a correction against October growth. Significant support are marks: 1.2770 and 1.2750.

Fig. 2. GBP/USD chart

Read also: “The risks of a trade war are back

Hanzenko Anton


Earn with the help of the trade service on the news Erste News!

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