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BOE Decision Weighs on Pound

February 4, 2016 at 15:42 by Miranda Marquit

Stack of UK coins on GB pound billsThe latest interest rate decision from the Bank of England is weighing on the pound right now, sending it lower against many of its counterparts. Although sterling is still higher against the greenback, it’s fading a bit.

The latest policy announcement saw the BOE maintaining its record low interest rates. One of the most significant changes in this month’s decision was the voting. Ian McCafferty has been voting for months to raise rates, and has been the only dissenter. This time, though, McCafferty changed his mind and voted along with the other members of the MPC to keep rates low.

News that the BOE will continue to keep rates low sent the pound lower against its counterparts immediately following the announcement. Sterling has since recovered a little bit against some of its counterparts, like the dollar, but it is still struggling.

BOE Governor Mark Carney does think that the next move in interest rates will be to send them higher, rather than to cut further, but many would like to see that. However, with sluggish economic growth, that could be a way off.

At 15:39 GMT GBP/USD is up to 1.4604 from the open at 1.4600. EUR/GBP is up to 0.7665 from the open at 0.7609. GBP/JPY is down to 170.9590 from the open at 171.8640.

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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