The POUND in PLAY: Impact of the BoE’s 50-Point Rate Move
GBP Official Bank Rate
The Bank of England’s Official Bank Rate Report is a monetary policy report that outlines the Bank’s decisions on interest rates and its views on the economy. The report also includes an analysis of economic conditions in the UK and the outlook for inflation and growth. The rate affects the cost of borrowing for consumers and businesses and influences the exchange rate and overall economy.
The previous rate was 3.5%, and the BoE has forecasted a 50-point raise leading to a 4.0% interest rate on the Sterling.
With a critical look at the GBPUSD H4 Chart, it is obvious that though price is at a resistance, it is also important to note that it is locked in a range due to the fact that the Dollar index has not given a clear direction on the monthly chart. The Sterling price is contracting into a triangle pattern awaiting a break out on either side depending on what side the report favors.
If the actual release is greater than the forecast, it is good for the currency, which means strength for the GBPUSD – all things being equal.
Why do Investors and Traders care?
Traders and investors monitor the interest rate of GBP as it affects the value of the currency. Changes in the interest rate can signal shifts in the economy and affect the performance of other financial assets, enabling informed decision-making for buying and selling the currency and assets.
Now reach out for your ACT Trading platform, mark up your most preferred POUND pairs, FUND your trading account if you are yet to, and position yourself to ride the economic wave. Our experts will be hosting a LIVE trading session 30 minutes before the release of the news, that’s an opportunity you don’t want to miss.
POUND Pairs: GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, GBPUSD, EURGBP, GBPZAR, GBPTRY, etc.
Schedule for The GBP Interest Rate release: Thursday 2nd February 2023. 1:00 pm (GMT + 1)
Schedule for the LIVE Trading session: Thursday 2nd February 2023. 12:30 pm (GMT + 1)
Author: A.A. James
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