BOE monetary policy decision Overview
It’s a ‘Super Thursday’ again and time for the Bank of England’s (BOE) take on its monetary policy program, which will be announced at 1200GMT, alongside the release of monetary policy meeting minutes.
The BOE is widely expected to keep the bank rate unchanged at 0.25% and maintain a neutral stance, citing that the interest rates could move in ‘either direction.’ In short, the BOE is likely to adopt a wait-and-see approach amid a combination of high inflation and weak economy, evidenced by a drop in retail sales and softer wages, despite solid employment numbers released a day before.
The BOE’s March meeting is one of those meeting without updated projections or a press conference, and hence, there will be limited market reaction on the bank’s status-quo.
How could the BOE affect GBP/USD?
On a non-event BOE monetary policy decision, the GBP bulls could find some support, yielding a bounce towards 1.2285 levels. A break above 1.2285 (38.2% fib retracement of 1.2570-1.2109) would open up upside towards 1.2346 (Feb 7 high) and 1.2370 (Jan 23 low). On the other hand, a breakdown of support at 1.2203 (10-DMA), could trigger further declines in the pair towards 1.2180/75 levels (Fib S1 support).
Key notes:
GBP/USD Forecast: waiting for the BOE
BoE: Expect no fireworks – Goldman Sachs
GBP/USD: Bears in control, breaches 1.2250 ahead of BOE
About the BOE Interest Rate Decision
BoE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD falls toward 0.6400 amid mixed markets, light trading
AUD/USD is falling back toward 0.6400 in the Asian session on Monday, The pair failed to find any inspiration from the mostly upbeat Chinese business PMIs. A fresh uptick in the US Treasury bond yields and a mixed mood are weighing on the Aussie amid a China holiday.
USD/JPY hits fresh 11-month highs, approaches key 150.00 level
USD/JPY is extending gains toward 150.00, flirting with fresh 11-month highs in Asian trading on Monday. The pair is supported by the renewed upswing in the US Treasury bond yields and dovish BoJ commentary. However, Japanese FX intervention risks mount.
Gold moves below $1,850 on market caution, Fed Powell speech eyed
Gold extends its losing streak that began on September 25, trading lower around $1,840 per troy ounce during the Asian session on Monday. China’s Manufacturing PMI data was released over the weekend, which showed improvement into positive territory but failed to provide any support for the XAU/USD price.
DOT confirms trend reversal, eyes retest of $5 after reclaiming key hurdle
Polkadot price seems to be ending its downtrend after shedding 92.91% in the last two years from its all-time high of $55.09. In the last three days, DOT has inflated by 3.3%, breaching a declining trendline and confirming the potential start of an uptrend.
Week ahead – Dollar shines ahead of Nonfarm Payrolls
Dollar cruises higher, nonfarm payrolls on Friday will be crucial for this rally. Early indicators point to another solid month for the US labor market. Central bank decisions in Australia and New Zealand will also be in focus.