The GBP settled on Thursday against a basket of world currencies in a limited range of trading against the USD as investors refrained from building new positions in anticipation of decisions by the Bank of England at the end of its regular meeting. , Despite rising inflationary pressures in the country.
GBPUSD is trading at 1.3215 from the opening price of 1.3205 by 7:17 GMT, recording a high of 1.3219 and a low of 1.3198.
The GBP ended yesterday’s trading down by 0.6% against the USD on correction and profit taking after recording earlier trading at a high of 1.3328 USD, coinciding with the rise of the greenback against most major currencies.
The Bank of England’s monetary policy decisions, the Bank’s policy vote and a brief report on monetary policy developments are released by 11:00 GMT. Most expectations are that interest rates will remain steady at 0.25% and asset purchases at 435 GBP million.
Investors focus on the interest rate vote, especially since the previous meeting held on August 3 saw a significant change in the voting process from three members agreeing to raise interest rates by a quarter percentage point to only two.
This week, the country’s inflation rose by more than 2 % for the seventh straight month in August, setting the inflation target at 2 % and raising inflation expectations for the year to 2.7 % from 2.4 %.
Compounding inflationary pressures may force the central bank to begin to shift monetary stimulus and raise interest rates from record low levels. The bank is slowing down to wait for economic growth to improve and to determine the negative effects of the country’s separation from the European Union.