easyMarkets – Hot Topic – Bank of England / Interest Rates
July 20, 2016 12:06 pmVideo
Latest News
- ECB threw a lifeline to the euro April 11, 2024
- Technical Analysis – ETHUSD finds support at 50-day SMA April 11, 2024
- Trading Signals for GOLD (XAU/USD) for April 11-15, 2024: buy above $2,345 (6/8 Murray – symmetrical triangle) April 11, 2024
- EUR/USD: trading scenarios on April 11, 2024 April 11, 2024
- Analysis and trading tips for USD/JPY on April 11 (US session) April 11, 2024
- Analysis and trading tips for GBP/USD on April 11 (US session) April 11, 2024
- Analysis and trading tips for EUR/USD on April 11 (US session) April 11, 2024
- Technical Analysis – USDCAD surges to new almost 5-month high April 11, 2024
- Technical Analysis – EURGBP’s double bottom still waits for confirmation April 11, 2024
- Technical Analysis – US 30 index slides below 50-day SMA April 11, 2024
- Video market update for April 11, 2024 April 11, 2024
- EUR/USD. April 11th. Fed minutes: inflation concerns persist April 11, 2024
- GBP/USD. April 11th. The US inflation report shocked the bulls April 11, 2024
- Technical Analysis – USDCHF unlocks 6-month high April 11, 2024
- Overview of the GBP/USD pair on April 11, 2024 April 11, 2024
- Overview of the EUR/USD pair. April 11th. The market couldn’t hold up after the inflation report April 11, 2024
- Analysis and trading tips for USD/JPY on April 11 April 11, 2024
- What’s behind the US economy’s resilience? – Special Report April 11, 2024
- Technical Analysis – AUDUSD plummets in the US CPI aftermath April 11, 2024
- Technical Analysis – WTI oil pauses rally but remains supported April 11, 2024
For more info: http://www.easymarkets.com/gtw/6288142.aspx
This week’s Hot Topic is UK interest rates as the BOE keeps rates unchanged
What Happened:
UK interest rates remained unchanged at 0.5% despite the majority of investors anticipating a cut.
The GBP/USD reacted positively following the BOE interest rate decision and the release of the minutes report.
The currency pair’s rate soared as high as 1.34737 and and ended with 1.8% increase.
**At the time of writing though the GBP/USD erased all of these gains and is trading 400 pips lower at 1.3080.
So What lead to this situation?
During their meeting, the nation’s Monetary Policy Committee (MPC) took the decision not to proceed with any rate adjustments after a vote of 8 to 1.
But even though the result suggests almost everyone’s consent not to take any action, the minutes released by the BOE on Thursday revealed that there is expectation by many of the MPC members that there might be some adjustments during their next meeting on 4th August.
The Bank also commented on the fact that some businesses are hesitating to proceed with their investment plans and projects while it also anticipated a slowdown of buy-sell transactions and development projects within the housing industry.
So What’s next?
The bank has to consider the nation’s slowdown of economic growth, according to projections made by a number of economists who also forecast that it could also fall into recession.
Now, even more investors are anticipating a rate cut but until then the markets are not prepared to settle as the economy is still pricing in the impact of the vote to Leave the EU.
Watch out for the ECB interest rate decision on Thursday and the CAD Price index on Friday.
Of course let’s not forget the possible downgrade of the Turkish economy by Moody’s
What do you think will happen? Comment below and let us know your thoughts.
Related Posts: