-Â Bank of England (BoE) to Retain Current Policy Following 8 to 1 Split in March.
–Â Will the Policy Statement Reveal a Growing Rift Within the BoE?
Trading the News:Â Bank of England (BoE) Interest Rate Decision
Even though the Bank of England (BoE) appears to be in no rush to lift the benchmark interest rate off of the record-low, the fresh updates to the quarterly inflation report may fuel the relief rally in the British Pound should the central bank highlight an improved outlook for the U.K. economy.
Why Is This Event Important:
Moreover, the policy statement may reveal a growing rift within the Monetary Policy Committee (MPC) following the 8 to 1 split in March, and a greater dissent may heighten the appeal of Sterling as it boosts interest-rate expectations. In contrast, the majority may merely try to buy more time as ‘Brexit’ continues to cloud the outlook for growth & inflation, and more of the same from the BoE may undermine the recent recovery in the GBP/USD as market participants push back bets for a rate-hike.
Impact that the BoE rate decision has had on GBP/USD during the previous meeting
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
MAR 2017 |
03/16/2017 12:00 GMT |
0.25% |
0.25% |
+90 |
+92 |
March 2017 Bank of England (BoE) Interest Rate Decision
GBP/USD 15-Minute
The Bank of England (BoE) voted 8 to 1 to keep the benchmark interest rate at the record-low of 0.25%, with Kristin Forbes pushing for a 25bp rate-hike, but the majority appears to be in no rush to move away from the highly accommodative stance as the central bank reiterates ‘monetary policy can respond, in either direction.’ Despite the BoE’s wait-and-see approach, the British Pound jumped following the dissent, with GBP/USD climbing above the 1.2300 handle to end the day at 1.2357.
