The pound sterling bounces while investors begin to digest the forecast of lower GDP of the BOE
The sterling pound (GBP) strives to gain ground against its main peers on Friday after a strong sale on Thursday. The British currency discovers some buying interest while investors begin to digest the result of the Bank’s policy meeting (BOE). Investors sold the British currency the previous day after the BOE meeting in which the Central Bank reduced interest rates at 25 basic points (PB) to 4.5% and reviewed the forecast of the gross domestic product (GDP) for the year at 0.75%, less than 1.5% projected in November.
Investors had anticipated a reduction in interest rates of 25 bp, with a division of votes of 8-1, but all officials supported a greater flexibility of monetary policy. However, the remarkable reason behind the strong sale of the sterling pound was that the member of the Monetary Policy Committee (MPC), Catherine Mann, a declared defender of a more restrictive policy, joined the official Swati Dhingra and favored a rates cut greater than 50 bp. This scenario indicated how much the economic perspective concerns the economic perspective. Read more…
GBP/USD Forecast: Libra sterling sellers doubt before US NFP data.
The GBP/USD lost traction and fell to a minimum of several days below 1,2400 on Thursday after the monetary policy of the Bank of England (BOE). After starring in a rebound in the American session, the pair seems to have stabilized above 1,2400 early Friday.
The BOE reduced the policy rate at 25 basic points (PB) at the February policy meeting, as was widely anticipated. However, two members of the Monetary Policy Committee (MPC) voted unexpectedly in favor of a 50 PB cut, which caused a sale of the sterling pound with the immediate reaction. Read more…
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.
