Ikonfx: June 10th Conference Minutes of Bank of England

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amandalanlulei
Member

According to the monetary policy conference minutes released on Wednesday (June 10th), Andrew Sentance, member of Monetary Policy Committee in Bank of England, for fear of inflation, demanded to raise benchmark interest rate by 25 basis points. Other seven members voted to keep the interest rate at 0.5%.
Interest rate increase is usually beneficial to the rise of a country’s currency by making assets denominated in domestic currency, such as national debt, more attractive.
Pound forex rate against USD rose from 1.4822 dollars on Tuesday to 1.4870 dollars, the highest intraday rise to 1.4942 USD. Pound/ USD forex rate has not closed above 1.49 USD.
Euro/ Pound forex rate slumped 0.4% at 82.47 pence.
Forex analysts pointed out that pound also got support from the expenditure and fiscal deficit cut plan announced by Britain government on Tuesday.
Andrew Wilkinson, veteran forex market analyst from Interactive Brokers, remarked : “the general view is that Chancellor of Exchequer Osborne’s budget plan is sufficient in maintaining its best credit rating, which prevents economy from recession again.”
According to him, members of the Monetary Policy Committee and Andrew Sentence have included rate increase into schedule.
Edited by: Ikonfx

Posted 1 year ago #

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