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July 2016

BoE keeps interest rates on hold at 0.5%

Published: Thursday 14 July 2016

Pound rallies after the Bank of England surprised the market by holding the UK interest rate at 0.50%. Quantitative Easing were also unchanged. There had been speculation that the bank would announce a cut of 0.25% to cushion the impact of Brexit to the economy. The rate decision was made by 8-1 vote. Their statement noted that "most members of the committee expect monetary policy to be loosened in August."
 
New Chancellor Philip Hammond said today that the Brexit had "rattled confidence" and he pledged to take "whatever measures" to shore up the economy and that "the number one challenge is to stabilize the economy, send signals of confidence about the future, plan for the future markets, business and to international investors." Mr. Hammond will also meet with Mark Carney today "to make an assessment of where the economy is."

Latest FX news by Chris Verdet