BOE Holds Rates, Pound Suffers
The Great Britain pound fell today against most major currencies after the nation’s central bank kept its key interest rate and the asset purchase program unchanged. The currency managed to advance versus the Japanese yen.
The Bank of England left its Official Bank Rate at the record low 0.5 percent, as was expected by Forex market participants. The bank also kept its asset purchase program unchanged at £200 billion. The pound is expected to remain weak, unless some major positive factor would intervene.
GBP/USD traded near 1.5984 as of 14:34 GMT today after falling earlier from 1.6002 to 1.5943. GBP/JPY rose from 129.45 to 129.88.
If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.
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Earlier News About the Great Britain Pound:
- Services PMI Boosts Pound in Short-Term, Outlook Remains Negative (2011-07-05)
- Slower Manufacturing Growth Makes Sterling Weaker (2011-07-01)
- Sterling Trades Lower with Widening Current Account Deficit (2011-06-28)
- Pound Regains Strength After Week of Losses (2011-06-27)
- UK Economic Outlook Causes Weakness of Pound (2011-06-24)
2 Comments
How low does the BOE wish the pound to fall against other currencies,surely the falling value of the pound at home and abroad,must worry someone ??? Its as if the Pound is in freefall and the BOE is quite happy to sit back and do nothing..Its pathetic how much buying power our pound has lost in the last 3-4 years ……
If I’d be BOE, I’d indeed sit happily and watch pound falling. I’d be more worried with other things – e.g. GDP growth, inflation and employment.