BoE Vote On Interest Rates Has Little Effect On Sterling – 2 May, 2019

The Bank of England voted to keep interest rates steady at 0.75, citing their view of a need for a tighter policy, causing sterling to be knocked off of a two week high. Brexit talks are currently still the main driver of the currency, so this decision seems to have had little effect on the pound. Since Britain decided to delay the divorce from the European Union in March, sterling was trading in the $1.28-$1.30 range, with this weeks $1.31 being a high. Shortly after the BoE vote, sterling was down 0.2 percent for the day to $1.3019, weakening against the euro to 85.79 pence. Japan is currently on a holiday break, causing some traders to worry about escalated moves in the foreign exchange market.