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Pound is falling after the Bank of England has fixed interest rates

2019-06-20 12:11 pm | Resource: NEWS | No Views : 160

Pound is falling after the Bank of England has fixed interest rates

The Bank of England kept interest rates and quantitative easing, as was widely expected, but reduced growth forecasts for the second quarter. The central bank also lowered its growth forecast for the British economy to zero in the second quarter of 2019, highlighting the risks of global trade and growing concerns about Britain's exit from the EU on the deal.

The nine-member monetary policy committee, headed by Governor Mark Carney, unanimously decided to keep the interest rate at 0.75 percent, the bank said in a statement on Thursday. Bank of England officials have spoken of the need for higher borrowing costs in the not-too-distant future, but Governor Mark Carney has announced that the central bank's monetary policy committee has voted unanimously to keep interest rates at 0.75%.
  • The previous change in the bank's price was a quarter-point increase in August 2018, now at its highest level since 2009.
  • Corporate bond purchases were kept at £ 10 billion and government bond purchases were £ 435 billion.
  • The bank reduced its second-quarter growth forecast to zero from 0.2 percent as factors behind the first-quarter growth faded.
  • The bank said core growth appeared slightly weaker in the first half of the year than in 2018, slightly below its potential.
  • In May, inflation fell to the central bank's target. The bank expects inflation to fall below 2 percent this year.

UK ten-year bond yields fell to a day low of 0.809% after the decision. The FTSE 100 extended its gains, rising 0.5% during the afternoon session.

GBP Trades
  • The pound extended losses against the euro, dropping 0.4% to 89.09 pence
  • While the British currency also fell from 1.2723 to 1.2694 against the dollar.
  • The Pound was down against the Yen at 0.04%, with GBP / JPY trading at 136.58.
  • The pound retreated against the Swiss franc 0.55% to trade at 1.2500.
  • Sterling fell against the Canadian dollar by 48% to trade the Canadian dollar at 1.6709


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Best Opportunities, Vision and Technical Analysis for the USD/JPY pair 17 April 2019

We offer you the analysis of the US dollar against the Japanese Yen on Wednesday, April 17, 2019 with the most important expectations for the dollar against the Japanese yen on the market. Time frame Used - four hours The USD/JPY is moving in a bullish direction in the near term. USD/JPY is still facing resistance and selling pressure around 112.10 as the USD-JPY closed yesterday's session down below 112.00…

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