The Bank of England will play again against the pound (Demo)
Today, in 14:00 in Moscow will Board meeting of the Bank of England, monetary policy, and its outcome will have a significant impact on the pound.
There is not the slightest hope that the Bank of England will raise the refinancing rate. The whole affair as purely economic factors and political situation. Inflation, though rising, but against the stability of the unemployment rate and a significant slowdown in retail sales. There is thus a serious decline in consumer activity, and in such conditions increase the refinancing rate is simply not feasible. The outcome of the parliamentary elections is not removed the political tensions that arose after the referendum on the Brexit'a, but rather only exacerbated it. There are risks for the development of a full-fledged political crisis in the UK, and in view of the growing economic difficulties, a rate increase would lead to more problems.
However, the FED gradually increases its refinancing rate, and rising interest rates gap puts a pound at a disadvantage. There is every chance that at the end of the session, the pound fall to 1.2650.
Material is provided by InstaForex-www.instaforex.com
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