Today the pound sterling has jumped against the US dollar. Traders rushed to buy the pound after the Bank of England announced its decisions on monetary policy. The UK regulator put the key interest rate on hold at a record low of 0.25%. Seven members of the Monetary Policy Committee voted for keeping interest rates unchanged, but Ian McCafferty voted for tightening monetary policy. However, the pound sterling received a boost against the US dollar for a different reason. The GBP/USD pair rebounded from 1.32 and aims to break through the resistance level near 1.3360. The British currency won favor with investors amid the hawkish stance in the minutes of the Bank of England policy meeting.
Indeed, the regulator signaled its readiness to give up monetary stimulus in the nearest months. Meanwhie, rapid growth of the UK consumer inflation and low unemployment rates indicate that interest rates could be lifted in the near future. Nevertheless, many experts are warning that looming Brexit remains the main headwind to the British economy. Some analysts expect the Bank of England to raise rates until early 2018. As for the GBP/USD pair, currency strategist foresee correctional moves in the short-term. This might happen right after US inflation data in case the CPI surpasses market expectations