BOE: Existing stance of monetary policy is appropriate

Anil Panchal FXStreet

“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.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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