The British pound gained versus its main rivals the euro and the U.S. dollar, after a day of decisions in the Bank of England in which the asset-purchase program was voted to be held unanimously, together with statements published in newspapers that added attractiveness for the Great Britain currency.
Not only the British currency but also gilts rose today intensively after Bank of England Chairman Mervyn King affirmed through a note in the Scotlandâs Herald that interest rates will be risen in the U.K. in the future, declaration that even without pointing a period for this event, already brought confidence towards the pound to the highest level in months, since the British economy and financial sector were influencing considerably in a negative way towards the pound outlook. Currently the interest rates in the U.K. are at a record low of 0.50 percent to stimulate the economy.
Finally positive evidences of a recovery start to appear in the U.K. through reports and government officials, providing support for a rebound in the pound rates, according to analysts. The fact that interest rates are already approached as a subject by central bankers can be interpreted as an evidence that hikes will happen in a foreseeable future, which is definitely good for the pound.
GBP/USD traded at 1.6612 as of 14:38 GMT from a previous rate of 1.6364 in the intraday. EUR/GBP traded at 0.9023 from 0.9122.
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