The rates are unchanged, but the Bank of England is not letting go

Yesterday, special attention of traders attracted events related to the meeting of the Bank of England. The key decisions taken at the meeting concerned interest rates.

Interest rates unchanged

At the meeting, a decision was made to keep interest rates unchanged. An important element of the meeting was information from the BoE regarding the forecast of UK economic growth, which was significantly reduced. This testifies first of all to the negative impact of Brexit on the economy of England. On several occasions at the meeting, the BoE authorities emphasized the increase in uncertainty in the market. Therefore, it was decided to take a step lowering the economic forecast for the United Kingdom.

Despite the rather pessimistic moods of the Bank of England (which significantly affected today on the pound chart) at the meeting, it was emphasized that uncertainty is only a short-term forecast. According to BoE, there is a good chance of improving domestic spending in the light of the current increased costs of bank financing.

How did the information affect the market?

5-day chart GBP / USD.

The chart continues, despite today's rebound, the pound is still in a strong downward trend.