BOE: Existing stance of monetary policy is appropriate
|“Existing stance of monetary policy is appropriate,” the Bank of England (BOE) noted in the minutes of its Monetary Policy Committee meeting.
“BoE stands ready to take further action as necessary to support economy”, the BOE added.
“Balance of risks to economic outlook is to the downside,” said the British central bank while also adding that the Inflation likely to fall below 1% over the next few months.
Additionally, the BOE also stated that the spread of Covid-19 and the measures to contain it are having a significant impact on the United Kingdom and many countries around the world. Activity has fallen sharply since the beginning of the year and unemployment has risen markedly.
Market implications
Following the news, GBP/USD registered a 50-pip rise to 1.2382, currently around 1.2365. The upbeat performance might have further to go if Governor Andrew Bailey utter hawkish statements during this press conference on 09:00 GMT.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.