The Pound rose quickly. Overview for 21.06.2018

On Thursday afternoon, GBPUSD is quickly rising after the June meeting of the Bank of England was over.

The British Pound is growing against the USD today. The current quote for the instrument is 1.3210.

The June meeting itself ended without any surprises and the results were rather neutral. All key parameters of the regulator’s monetary policy, such as the interest rate and the Quantitative Easing volume, remained unchanged.

Investors were quite surprised and even delighted by the fact that 3 out of 9 policymakers, including BoE Chief Economist, voted for the rate hike compared with only 2 votes in the previous meeting, which means that the number those who want to tighten the monetary policy is increasing. Now investors believe the key rate might be increased during the next BoE meeting in August.

In theory, everything might happen. The British economy, even with possible Brexit complications, looks quite stable and strong; the inflation in the country is also under control, as the regulator took no fiscal measures to manage the Consumer Price Index this year. One may assume that the monetary policy will be tightened slowly, although there are some doubts that it might happen in August.

The Pound investors strongly reacted to this news and its’ quite clear why: the Bank of England is known to be very conservative and hasn’t revised the benchmark rate for a long time. Now, there is a real opportunity that the rate might be revised upwards.