The Bank of England was not expected to make any changes to monetary policy, leaving the interest rate at 0.50% (same since March 2009) and QE program at 375 billion pounds.With the economy continuing to grow quickly and housing prices on the rise, there is growing pressure for a rate hike on Carney and co. Such a hike could even come before the end of the year. The meeting minutes could show that some members voted for a rate hike at this meeting.
GBP/USD traded around 1.6760 towards the decision, dropping from an early move higher.The pair is stabilizing at current levels.
The more closely watched decision today comes from across the channel: the European Central Bank is expected to take action, and quite a bit of it.
See the ECB Preview: Going negative and beyond – 6 options for Draghi
