Blog


Bank of England Raise Rates?

Sterling consolidated gains today as the market geared up for a rate rise from the Bank of England this week when investors will analyse the bank’s statement for the future direction of interest rates.

With continued Brexit uncertainty and a mixed bag of results for the British economy, the expected rate hike is likely to be a one-off move, analysts said, rather than the start of a fully-fledged tightening cycle.

If there is no hike – which is completely possible – the pound will be sold off, it would plummet.
The most likely scenario is a rate hike and it should have limited upside as this is priced in, especially if it’s a one-off scenario.

Sources we work close to are suggesting that the vote will be a 6-3 in favour of a rate hike.

The dollar slipped to an 11-day low today, with investors turning cautious after news that investigators probing Russian interference in last year’s U.S. elections had charged President Donald Trump’s former campaign manager.

Against a basket of major currencies, the dollar also slipped, having fallen from its highest in three months at the end of last week.

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Equals Money. Equals Money is a trading style of FairFX PLC. FairFX PLC is authorised and regulated by the Financial Conduct Authority to provide payment services. (Financial Services Register No: 488396) | Terms and Conditions | Privacy Statement | Careers