25 June, 2018

BoE stays interest rates spurring the Sterling to excel

Following the Bank of England meeting last Thursday, where they decided to keep interest rates the same (0.5%), the Pound Sterling excelled, rising from a 7-month low and stood at $1.325.

Chief economist, Andy Haldane, was amongst the three policymakers, who pressed for rates to rise to 0.75% in August.

Despite experts believing that interest rates will remain unchanged for a while longer, some see the split vote as a sign that interest rates could rise in August.

Governor of BoE, Mark Carney is due to step down next summer and candidates are gearing up to take on one of the most respectable roles in central banking.

Last week, Andrew Sentence, a former member of the bank’s rate-setting MPC, demanded that the replacement should not be “jetted in from overseas” and should have a bigger understanding of the UK economy than Carney.

Despite it officially taking a month before the process begins, there are murmurs of questions surrounding the possible candidates.