Pound Sterling Forecast – Bank of England Decision today 

GBP USD Exchange Rate Plunges to Lowest Since September 2020

How will the pound react today?

The Bank of England hold their latest interest rate decision at midday today, 12pm UK time. No change in interest rate policy is expected, but such events do have the power to move markets and are worth being aware if considering any sterling trades in the coming days, weeks and months.

Sterling has recently been trading at strong levels against many currencies including the Euro, Australian dollar, New Zealand dollar, Canadian dollar and more. Today’s news could easily change the picture, depending on how the MPC – Monetary Policy Committee opts to vote.

Comprised of nine members, it is their majority decision that will stand. Any indications of calls by a member to be considering cuts could weaken the pound. At December’s meeting, six members voted to hold, three voted to raise.

The economic picture has changed since the last meeting on the 14th December. Will we see a vote for a cut because of fears of economic growth, possibly leading to a weaker pound. Or will the higher Inflation number see talk of any cuts dismissed, likely leading to a stronger pound?

All shall be revealed at midday, with Governor Bailey giving a Press Conference after at 12.30 with his latest inflation and growth forecasts.

This is arguably the most important data point so far this year, and could throw up some real volatility for sterling throughout the day.

Today’s news has real potential to ignite some volatility on the pound, and upset or extend the trends so far of 2024. For a more detailed chat tailored to you and your specific situation, please reach out to our specialists today.

You can contact me jonathan Watson on [email protected]