The Bank of England MPC has just announced (12.00pm London) that they have as expected left interest rates and asset purchases unchanged. The MPC has concluded their two day meeting, 7 and 8 January 2015.
Current base interest rate: 0.5%
Asset purchases (QE): £375bn
The minutes for today’s MPC meeting will be released on Wednesday 21 2015. Traders will be eager to see if there has been a change in the committees voting split (previously 7 -2) and to disseminate the discussion, to see if factors like the fall in crude prices, and instability in Russia were mentioned.
GBPUSD has been in a downward trend since July 2014 (1.7050), and look sets to trade below the psychological 1.50 level in the near term, the move has been driven by USD strength.