Today two important interest rates decision were highly anticipated by the markets â the monetary policy decisions by the European Central Bank (ECB) and the Bank of England (BoE).
Before both of the banks released their monetary policy statements, the majority of the economic analysts were predicting the results. It was expected that BoE will lower the rates, while ECB will abstain from reducing or increasing the interest rates.
Both predictions became real â the Bank of England cut the official Bank Rate from 5.50% to 5.25% and the European Central Bank decided to hold the rate on the main refinancing operations at 4.00%.
Both euro and the Great Britain pound started to fall shortly after the rate decision announcements went public. Euro is now losing almost 1% to the U.S. dollar, while pound is moving to 1.1% daily loss against both dollar and Japanese yen. EUR/USD fell from 1.4629 to 1.4502, GBP/USD dropped from 1.9623 to 1.9429.
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