The Great Britain pound weakened after the Bank of England left its target rate unchanged, suggesting that the UK economy is still unprepared to leave accommodative monetary policy. Currently the sterling attempts to rebound, but without any significant success so far.
The BoE maintained its official Bank Rate at 0.5 percent and kept its stock of asset purchases at £200 billion yesterday. The last change in the key rate was on 5 March 2009, when the bank decreased the rate by 50 basis points to current level. The most recent change in the size of the asset purchases program was the increase by £25 billion on 5 November 2009.
The pound slumped against other major currencies yesterday. Today, the UK currency attempted to rise against the US dollar, but failed. The rally versus the yen was more successful, while the currency traded flat against the euro.
GBP/USD traded at 1.6386 as of 4:50 GMT today after it rose to 1.6433. Yesterday, the currency pair sank from 1.6487 to 1.6386. GBP/JPY gained from 131.16 to 131.84, following the yesterday’s slump from 132.88 to 131.15. EUR/GBP was little changed at 0.8875 after the drop from 0.8992 to 0.8870.
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