The GBP/USD pair is trading upwards despite decisions of the Bank of England and conservative approach to the monetary policy.
On Thursday afternoon, the British Pound looked positive in the pair with the American currency. However this optimism didn’t last long after the BoE’s decisions. The current quote for the GBP/USD pair is 1.4477.
During its May meeting, the Bank of England decided not to change anything, and by general consent, which happens very rarely and is worth twice as much. However, comments of the British regulator that followed later indicated that there were risks in the forecasts. As a result, buyers were forced to retreat. Perhaps, this was the first time the Bank of England commented on the possibility of the UK’s exiting the European Union on such level. According to its opinion, this step might cut the economy growth, cause difficulties on the employment market, and boost the inflation.
There is a point in this, but not everything in the British economy depends on business relations with the EU. However, financial experts use numbers, and these numbers are a little bit scary. This is exactly what might be the main weapon of those, who are against the UK’s exiting the EU in the coming months. I remind you that the referendum is going to take place on June 23rd
All discussions and decisions concerning the interest rate are now postponed until the referendum ends. The results of it will influence whether the Central Bank will have to keep its balance between the inflation and the economy growth – and how.
One could see it earlier, I mean that shortly before the referendum there would be a lot of speculations in pros and cons of any decision of the British people. However, this point was raised for a good reason, and the Englishmen remember about this. In any case, the Pound will be very sensitive to any changes in sentiments concerning this issue and continue being under pressure.
RoboForex Analytical Department
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