Business Magazine

Pound Rate Picks Up Pace Following Bank Of England Rate Comments

Posted on the 17 September 2017 by Forex News Shop @forexnewsshop

As many had anticipated Mark Carney and his team at the bank of England kept rates at a steady 0.25% and left their asset purchase program untouched. The committee voted 7-2 in favour of leaving rates at 0.25%.

With now more necessity to look at rate rises the tone of Bank Of England helped Pound Rates to perform well against the majority of the majors.

Change of Tone from The Bank Of England?

With inflation now becoming potentially as troubling as the Brexit induced UK slowdown policy makers are now having their hands forced.  Many investors now believe the Bank of England will raise interest rates before the end of the year. November being the likely time.

During the minutes which followed the rate decision, Carney whilst still very concerned with the outlook surrounding Brexit stated that the economy was reacting better than predicted.  Stating that Inflation was rising and the committee have also seen promising signs that UK wages could also be on the rise.

The Bank of England envisages next month’s inflation figures to rise again and remain above the target level of 2% for years. The low Pound Rate accelerated inflation with Fuel and household goods all costing more.

Touching on the UK Bond buying stimulus the Bank announced that a reduction in assets purchases would take place in the coming months in order to curb inflation.

The arguably more upbeat tone of The BOE saw Pound rates rise with the GBP performing well over the remainder of the week. The message was reinforced on Friday by Gertjan Vlieghe. Mr Vlieghe who is considered to be one of the most cautious MPC members claimed during a speech on Friday that

“The evolution of the data is increasingly suggesting that we are approaching the moment when Bank Rate may need to rise.”

His comments assisted Pound rates to improve on Wednesdays initial gains.

GBP to Euro has enjoyed solid gains since the vote and accompanying minutes with GBP to Euro moving sharply from 1.1271 to 1.1339. The currency pair have continued to strengthen with GBP to Euro closing on Friday at 1.1373

Pound Rate GBP to EUR

A currency pair which shows no signs of slowing down is the GBP to USD. The pair continue to break records with the GBP to USD now amongst their highest post Brexit levels sitting at 1.3594. Next week could also see GBP to USD strengthen further with the tension surrounding North Korean showing no signs of stopping. Continuing further diversion from the US Dollar could be inevitable.

Pound Rate GBP to USD

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Schindler’s Lift

    Schindler’s Lift

    Following a boozy afternoon on the tiles, I had no memory of making it back to our hotel in East London. This is despite staggering from Soho to Piccadilly... Read more

    11 hours, 16 minutes ago by   Jackscott
  • Electric Universe - Yamnaya People - proto-Saturnian-split Date?

    Electric Universe Yamnaya People proto-Saturnian-split Date?

    THERE WERE GIANTS IN THOSE DAYS:yes, this looks like Free Planet taking the Bible as a Historical Document...The Electric Universe concept (ameliorated by... Read more

    11 hours, 27 minutes ago by   Freeplanet
  • A Ripple Conversation With Gregg Emley Of Holy Grove

    Ripple Conversation With Gregg Emley Holy Grove

    When I was a kid, growing up in a house with Cat Stevens, Neil Diamond, and Simon and Garfunkel, the first time I ever heard Kiss's "Detroit Rock City," it was... Read more

    13 hours, 46 minutes ago by   Ripplemusic
  • Freshening Up For Spring Tips

    Freshening Spring Tips

    Check out our Workshop Tip Videos on You Tube. If you can't attend the new Bridget Beari Home Store workshops then I'll be doing some quick video wrap ups of... Read more

    15 hours, 19 minutes ago by   Bridgetbeari
  • Brown Sugar Cream Pie

    Brown Sugar Cream

    I have always found the chemistry of cooking fascinating. The process of combining together a few (or sometimes many) ingredients, which on their own are not al... Read more

    17 hours, 16 minutes ago by   Mariealicerayner
  • Wildland Firefighter & Firefighter Reserve – Pechanga Fire Dept. (CA)

    Wildland Firefighter Reserve Pechanga Fire Dept. (CA)

    Pechanga Fire Dept. (CA)  WILDLAND FIREFIGHTER FIREFIGHTER RESERVE Wildland Firefighter: $19.00 hourly The PFD has the responsibility of protecting the... Read more

    17 hours, 35 minutes ago by   Firecareers
  • LeToya Luckett Gives Advice To Single Ladies “Give It To God”

    LeToya Luckett Gives Advice Single Ladies “Give God”

    Our girl, LeToya Luckett, who married Tommicus Walker last December, shared some words of wisdom for single ladies with Sister Circle co-host and... Read more

    19 hours, 13 minutes ago by   Firstladyb