The pound is consolidating. Overview for 06.08.2021

On Friday, the British pound in pair with the US dollar is busy consolidating. The current quotation is 1.3924.

Yesterday, the Bank of England finished another meeting, and this time the regulator seemed excessively conservative. The interest rate remained at 0.10% annually, which is the all-time low. The stimulation program also remained without a change at 875 billion pounds. Only one committee member voted for reducing stimulation.

The BoE repeated again that would start reducing the volumes of bought assets only when it was sure that the economy functioned well. If the financial system works as forecast, the BoE will moderately toughen the credit and monetary conditions. Everything as said before.

The regulator expects that the British GDP in Q2, 2021 has grown by 5%, and in Q3 it will rise by 3%. By Q4, it should reach the pre-pandemic level.

For the pound, no changes in the credit and monetary policy and no dubious signals became a good foothold.