May 02, 2019
Bank of England to Release their Rate Decision
The Bank of England is expected to release their rate decision at 11:00 GMT today, followed by their press conference and 11:30 GMT. This is likely to trigger movement in the British pound (GBP). To put it into perspective, the GBP/USD currency pair is currently trading above 1.3060. If the BoE hints at a rate increase, this could push the GBP above 1.31, while a disappointing outlook from the central bank could push the pair below 1.3, towards 1.295 and even lower. To get on this trading action, global traders are preparing their accounts in order to trade the GBP/USD pair and other related assets.
If the Bank of England introduces a higher interest rate today or even hints at higher rates this year, the GBP could be pushed higher. The current interest rate in the United Kingdom is 0.75% and while it is not expected to change today, the forecast for 2019 could change. The main reason for raising interest rates is inflation and when inflation rises, the interest rates also need to increase in order to balance the financial system. Analysts believe that the current inflation is rising in the UK as a result of the weak GBP as well as the Brexit uncertainty. As a result, import prices are rising, which, in turn, pushes prices higher.