The Bank of England (BoE) meeting did not bring any major surprises. The BoE left the bank rate unchanged. Commerzbank economists analyze the outlook for the British pound.
Convincing for now
Everything was as expected and the comments in the BoE monetary policy report and press conference were apparently not considered too dovish.
BoE Governor Andrew Bailey repeatedly stressed during the press conference that price stability was the BoE’s mandate. More than preventing a recession, for example. Furthermore, it was premature to consider rate cuts. The market seems to believe it.
The question is whether the BoE will also stick to these comments if inflation turns out to be more stubborn. For now, however, the market seems happy and the British pound could have room for a temporary recovery.
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.
