Forex News

Pound sterling is experiencing a continuous downfall that started more than a month ago in earlier November. GBP/USD has lost more 5.8% since November 9 – when it reached its maximum value in many years.

The Bank of England’s Monetary Policy Committee today decided to reduce the official interest rate paid on commercial bank reserves by 0.25% from 5.75% to 5.5%. The decision was driven mainly by the slowdown in the economical output and moderating consumers’ spendings.

Great Britain pound reached its two month minimum value against U.S. dollar today under the pressure of an interest rate cut during tomorrow Bank of England rates decision. GBP/USD touched 2.0353 level – the lowest since October 23.

Minutes of the last (7 and 8 November) Bank of England Monetary Policy Committee were released today, showing the vision for the U.K. economy by the committee members. As the interest rates decision was known by the traders already – BoE left rates unchanged at 5.75%, the major interest was drawn to the exact voting details.