Positive tone for UK economy
In a series of key announcements today, the Bank of England (BoE) has kept interest rates the same today, now at a record low rate. In good news for the UK economy, the BoE stated that the latest economic figures are painting a “slightly stronger picture” than they thought. Gross Domestic Product (GDP) has, as anticipated, risen in the second quarter of the year, and the UK unemployment rate is still falling. In addition, the Monetary Policy Committee has stated that interest rates may increase at a faster rate than expected, requiring some monetary policy tightening “in the coming months”. This was the hint that the BoE will amend their quantitative easing (QE) programme that the markets were looking for.
Denzil Rickerby, Corporate FX Dealer at currency specialists, Halo Financial (www.halofinancial.com), commented, “The Pound has bounced upwards on this news, hitting $1.33 against US Dollar and €1.12 against the Euro – and still moving on up… Now’s a good time to make the most of this sudden Sterling strength.”