BoE Stays Idle, Sterling Jumps

The Great Britain pound jumped today after the Bank of England refrained from changing its monetary policy, leaving the main interest rate and the asset purchase program the same.
The BoE did not act at today’s policy meeting, and its statement, as usually, was very brief:​

The Bank of England’s Monetary Policy Committee at its meeting today voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

Economists argue whether the central bank will raise interest rates in 2015 or it will be bolder and acts this year. The bank was maintaining its monetary policy unchanged since 2009.
The sterling demonstrated a huge rally against the euro, rising to the highest level since 2012, after the European Central Bank expanded stimulus. The UK currency retreated since the initial jump but still trades above the opening level against the shared 18-nation currency.
GBP/USD jumped from 1.6736 to 1.6804 as of 17:49 GMT today. GBP/JPY advanced from 171.95 to 172.15. EUR/GBP traded at 0.8117 following the drop from 0.8123 to 0.8063.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *