As expected, the Bank of England raised the bank rate by 50 basis points to 3.50%. As reported by economists at TD Securities, the Bank of England did not give much to offer support to the pound sterling.
The Bank of England has not been too surprising
“As expected, the Bank of England rose 50 basis points to 3.50%, signaling that more hikes are likely. The vote was biased downwards, since the two more moderate members of the Monetary Policy Committee advocated not raising the ratewhile the Mann hawk voted in favor of 75 basis points”.
“Less rise forecast implies less marginal support for the GBP“.
“Overall, we think the GBP has gone through most of the move, but we prefer to see weakness emerge in the crosses (such as against the EUR). There is some risk that this spills over into the USD as the holidays are coming up as well. , but we believe the hurdle is high for significant USD weakness to emerge.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
