Rate Decision At Midday
- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, Fed, GBP, Inflation, No Deal, Prime Minister, Rate Cuts, Sterling, UK, Uncategorised
- January 30, 2020
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President Donald Trump’s pitch to the Federal Reserve to cut US interest rates has been denied as Interest Rates stay put. Trump believes the central bank should cut its key lending rates to align more with its global peers.
US Federal Reserve have decided to keep Interest Rates unchanged as widely expected. Fed Reserve Chairman Jerome Powell has previously stated the Fed is unlikely to adjust interest rates so long as growth of the economy remains stable and inflation is contained.
The British Pound has been the worst performing currency over the last 48 hours with a ‘too close to call’ Interest Rate decision by the Bank of England this afternoon. The Pound has been up and down as investors sway back and forth between cutting rates and keeping rates on hold.
Despite PMI data released last week showing improvement and strength for the GBP; inflation is still far from the Bank of England’s 2% target. Will the BoE cut rates this afternoon or will they continue to monitor economic data going forward? A few members of the BoE have suggested they would sway towards voting for a cut over the last 2 weeks.
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