The current day will be significant for pound sterling traders. The GBP/USD pair still fails to hit the psychological level of 1.30. The pair has been trading in a rather wide range of 1.2920 to 1.2980 since the beginning of the week. The demand for the sterling is capped ahead of the Bank of England monetary policy meeting. The Bank of England monetary policy committee will hold a meeting later in the day. Many experts suppose that the UK’s central bank will stand pat on its monetary course. The key interest rate is expected to be left at 0.25% and the asset buying program, at 435 billion pounds. However, the UK’s economy looks ready for higher rates.

Stabilization of the British currency had a positive impact on the country’s inflation. The consumer price growth becomes sustainable coming close to the 2% level targeted by the Bank of England. Given such a background the hawkish stance of the financial authorities is rather justified. However, the bank’s officials do not show unanimity. Only Kristin Forbes supports a rate hike. This time, eight out of nine officials will be present at the monetary policy committee meeting. Charlotte Hogg gave up membership in the committee in April. This means in case of a tied vote, Bank of England Governor Mark Carney will have the final say.


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