Yesterday, the U.K. pound dropped in currency trading on the FX market, thanks to concerns over the budget deficit. Earlier today, though, the sterling got a boost in forex trading as the Bank of England announced its rate decisions. GFT's Boris Schlossberg reports on FX360 on the BOE decisions about rates and quantitative easing:
The news is somewhat encouraging, and provided the pound with a bit of a rebound earlier. However, the sterling is down again in forex trading -- but not by much. So far, currencies have been reasonably steady today.The BoE voted 9-0 to keep rates unchanged at 50bp and noted that GDP contraction in Q2 will likely be smaller than it originally thought. More importantly MPC members decided to keep the present level of the quantitative easing program at 125 billion GBP and made no commitment to increases it in the future stating that they will reassess the situation in August.
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