Bank of England interest rate announcement came and went without any surprises earlier today. The members of the Monetary Policy Committee voting unanimously to keep the base rate at 0.5% and the quantitative easing program at £375bn. The minutes of the meeting were released at the same time and the bank cited the forthcoming EU referendum as a major factor behind the decline in Sterling.
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That uncertainty will likely to remain with the polls suggesting that the “leave” camp neck and neck with the “stay” vote. The Pound managed to recover some of its value today buoyed by a weakening USD which fell on the back of US Fed Chairman Yellen’s testimony last night in which the US central bank reduced the possible interest rate hikes this year to 2 from 4 in December.
Latest FX news by Alastair Sweetman