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Pound continues its downward trajectory; market awaits BoE’s policy decision

By June 19, 2018September 27th, 2022No Comments

The Pound has had a fluctuant 6 months, rising to highs of $1.4325 back in April, and since then, tumbling down 8%, currently trading below $1.32. This is due to the worries surrounding a growth in the global trade conflict.

On Thursday, economists will be focused on the BoE’s policy decision where they will reveal their monetary policy for the next 6 months.

The Euro has also lost its ground, falling from £1.1635, to currently standing at $1.1560.

Results from Bloomberg’s newest survey of 51 economists, suggest that BoE will raise interest rates in the third quarter of this year, with 55% of those surveyed predicting a rate hike in August. The findings also showed that the economists expected the UK economy to grow by 0.1% from 2017.

Earlier this morning, the President of the European Central Bank, Mario Draghi, made a promise that the bank will proceed slowly to lift interest rates.

Draghi gave a speech in the Portuguese town of Sintra, at an ECB conference where he emphasised the promise policy makers made to continue borrowing costs unchanged through to 2019, emphasising the “gradual approach to adjusting policy thereafter.”