BOE leaves rates unchanged


No change from the BOE, as expected. The Bank of England was widely expected to leave the interest rate unchanged at 0.50%, despite two members voting for a rate hike back in August. The Asset Purchase Facility was also expected to remain at 375 billion pounds.

GBP/USD remained on low ground towards the publication, trading just above 1.6450. The pair is sliding, but the move seems unrelated to the decision.

The slide began before the announcement and also EUR/USD is falling.

Update: Reports that ECB will launch QE worth €500 billion – EUR/USD down

Both Martin Weale and Ian McCafferty voted to raise the rates in August, dissenting against governor Mark Carney for the first time. However, as both inflation and wage inflation remain subdued, some market analysts have pushed back expectations for a first rate hike to February. Others expect a hike to happen as early as November.

The stage is now all set for the Draghi show: the European Central Bank will announce its decision at 11:45 GMT and president Draghi will meet the press at 12:30 GMT.

Here is the preview: 4 options – lower forecasts but probably no action

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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