Pound Sterling Price News and Forecast: GBP faces pressure after BoE leaves interest rates unchanged

Pound Sterling faces pressure after BoE leaves interest rates unchanged at 3.75%, as expected

The Pound Sterling (GBP) faces selling pressure, prima facie, after the Bank of England’s (BoE) monetary policy announcement. As expected, the BoE has left interest rates unchanged at 3.75%, with an 8-1 majority. This is the third straight meeting that the BoE has maintained the status quo.

BoE Chief Economist Huw Pill was the one Monetary Policy Committee (MPC) member who dissented from the hold decision and voted for an interest rate hike. Pill was expected to advocate an interest rate hike, as he stated in an event in the middle of the month, that interest rates should be raised for inflation to return to the central bank’s 2% target. Read more…

GBP/USD Price Forecast: Remains sticky around 20-day EMA in countdown to BoE’s policy

The GBP/USD pair trades flat near 1.3475 during the European trading session on Thursday. The Cable consolidates as investors await the Bank of England’s (BoE) monetary policy announcement at 11:00 GMT.

Investors expect the BoE to leave interest rates unchanged at 3.75% for the third time in a row. The BoE is expected to perform a delicate balancing act between elevated energy prices amid the closure of the Strait of Hormuz due to conflicts between the United States (US) and Iran have prompted the United Kingdom (UK) inflation and rising economic risks. Read more…