Sterling Surges on BoE Policy Decision & Services Growth
The Great Britain pound jumped today after the Bank of England kept the monetary policy unchanged and the service industries expanded with faster pace than was anticipated by analysts.
The BoE decided to keep its main interest rate at the record low 0.5 percent and the asset purchase program at £375 billion. Such decision was expected by market participants, but was welcomed nevertheless. The poor Britain’s economic health means that additional easing is still possible in the future.
Today’s macroeconomic data was not bad though, adding to the strength of the pound. The services Purchasing Managers’ Index rose from 51.8 in February to 52.4 in March, compared to the forecast of 51.4. It was the fastest growth in seven months.
GBP/USD rose from 1.5128 to 1.5172 as of 14:31 GMT today after falling to 1.5032 earlier. GBP/JPY surged from 119.51 to 123.31 after Japan’s central bank did not refrain from announcing additional easing. EUR/GBP dropped from 0.8490 to 0.8434, but trimmed losses and traded at 0.8468 as the European Central Bank also refrained from an interest rate cut.
If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.
Earlier News About the Great Britain Pound:
- Pound Suffers from Manufacturing Contraction (2013-04-02)
- UK Pound Steady as Long Weekend Begins (2013-03-29)
- GBP Loses to USD & JPY, Gains on EUR (2013-03-27)
- CBI Retail Sales Weaken Pound, Glimmer of Hope Remains (2013-03-26)
- Pound Can't Get the Upper Hand Against the Euro (2013-03-22)