Bank of England Interest Rate Policy Meeting

The Monetary Policy Committee (MPC) met to decide on interest rate and monetary policy. It decided to hold rates at 0.50%.

It is also adding £50 Billion into the Asset Purchase Program.  Many analysts had felt this additional easing was coming for the British economy which is in a recession after Q4 and Q1 GDP were negative.

The committee also noted softer inflation allowing them to pump money into the financial system in order to oil it’s gears a bit.

The market is putting on strength in the sterling against the euro, and supporting against the greenback. The GBP however looks vulnerable to commodity currencies such as the AUD and CAD.

Fan Yang CMT is a forex trader, educator and Chief Currency Analyst of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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