ECB and BoEAs expected both ECB and BoE left key policy rates unchanged at 4% and 5.75% respectively. At the following press conference President Trichet stuck to the fairly hawkish line from last month.

These have been quite good news for both Euro and Pound, that have clearly gone up after the CB's decisions, marking multi-edcade highs above 2.11 (GBP case) and new record highs around 1.4740 (EUR case).

Check the effect that the meetings have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

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Analysts' comments

  • · Jean-Claude Trichet, ECB president: "Recent exchange rate moves had been undoubtedly sharp and abrupt. Brutal moves are never welcome." - The Irish Times
  • · Ken Wattret, chief euro-zone economist at BNP Paribas: "Words like this (Trichet's declarations) may be a bit subtle for verbal intervention by a central banker. Maybe it will be become more important over time." - Herald Tribune
  • Gavin Friend, head of FX strategy at Commerzbank Corporates & Markets: "Some people had run away with the idea of a (BoE) cut. The market started to price that in, but then we came out the other side and got a bit of relief." - Reuters