On Thursday afternoon, the GBP/USD pair is trading to the upside after the BoE meeting.
The British Pound is getting a little bit more expensive against the USD in the late Thursday afternoon. The current quote for the instrument is 1.2740. Today’s high was at 1.2794.
At the June meeting, the Bank of England left the entire monetary policy unchanged: the key interest rate at 0.25%, the QE program at £435B. The votes were split really surprising as the 3 votes were in favor of the rate increase and 5 votes were against. Besides, the record no longer contains any references to the fact that the policy may be changed at any moment. Now, everything is less surprising and definite.
In the comments that followed, the regulator said that each possible hike in the interest rate in the future would be slow, and the value of the hike – limited.
One should pay attention to the comments relating to the inflation. According to the BoE, by the autumn 2017 the CPI will have reached 3% or even a bit more and will remain above the target reading of 2% for quite a long time. The Pound decline will boost the inflationary pressure.
The inflation numbers are as important for the Bank of England in order to make decisions relating to the monetary police as the number on consumption and employment.
The Pound jumped higher, but retreated pretty quickly as well. The immediate response was a bit “over-the-top”, but it should in no way influence further movements of the GBP/USD pair.
RoboForex Analytical Department