Sterling falls as BoE keeps rates at all-time low.
GBPUSD falling today after the Bank of England kept the size of its stimulus programme unchanged and left its interest rate at an all-time low of 0.1%, as expected. Economists expected no policy changes by the Bank of England as it waits to see if a post-lockdown jump in inflation proves transitory. Sterling investors have been focused on signs of any concern from the Bank of England over about a recent increase in UK inflation, which broke above the central bank’s 2% target. There is currently no sign in the minutes or statement that the MPC is considering an early end to QE – leading to sterling losses across all sterling-linked currency pairs.
Next support to watch – 1.3861