LONDON – The pound is falling against the dollar on Thursday after the Bank of England held interest rates unchanged at 0.25%.
The slump comes despite an upgrade to growth and inflation forecasts, both of which would normally support the currency.
Sterling was rising against the dollar ahead of the BoE’s decision on Thursday lunchtime but slumped as soon as the rates decision was released at 12.00 p.m. GMT (7.00 a.m. ET). The pound is down 0.60% against the dollar at just after 12.40 p.m. GMT (7.40 a.m. ET):
Fawad Razaqzada, a technical analyst at FOREX.com, says: “The pound, which had been rising prior to the BoE’s Super Thursday, sold off. It was a classic case of “buy the rumour, sell the news” type of a reaction, although some would argue that the BoE sounded a little more dovish than expected. I, however, think the tone was not that dovish and there was a scope for it to bounce back once Mark Carney starts speaking at his presser.”
Jake Trask, a currency analyst at UKForex, says: “It appears investors may have been looking for a more upbeat tone from the bank regarding the UK’s economic outlook.”
Het bericht The pound is falling on the back of the Bank of England’s rate decision verscheen eerst op Business Insider.
