GBPUSD is rising on Thursday; everybody liked the BoE’s decisions.
On Thursday afternoon, the British Pound is pretty exhilarated against the USD. The current quote for the instrument is 1.3165.
So, the August meeting of the Bank of England is over. The interest rate remained unchanged at 0.10% and the QE program at £745B. This time, the BoE’s monetary policymakers were unanimous in their decision.
According to the regulator’s MPC report, the number of jobs in the economy and household incomes will remain lower than usual for some time due to the coronavirus pandemic consequences. At the same time, each and every monetary policymaker believe that the current parameters of the BoE’s policy may be considered as the most palatable.
Official data predicts that the British GDP in the second quarter of 2020 might be by 20% lower compared with the same period of 2019. However, the indicator is expected to move into the “black” by the end of this year.
The unemployment rate may expand up to 7.5% until the end of 2020 but this is due to the pandemic and is not expected to become a global tendency. Inflation is anticipated to remain below the target level of 2% and may be 0.25% on average at the end of the year.
All this is rather neutral for the Pound. The national currency may continue growing as long as the Bank of England is resisting the outside pressure and keeping its monetary policy intact.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.