POUND FLARES UP IMPRESSIVELY AFTER BANK OF ENGLAND HOLDS RATES STEADY, GBPINR HITS 105.70 MARK

Published on Feb 02, 2024 12:50

British Pound jumped impressively in the last session following the Bank of England�s unchanged monetary policy stance. The GBPUSD bounced from a two week low of 1.2630 to break above 1.2700 mark convincingly and approached 1.2750 levels. The Bank of England announced that interest rates would remain unchanged at 5.25%- near a 16 year high. It`s the fourth time the Bank has decided to keep the rate steady. The bank has noted that it expected inflation to drop quickly in the next six months before rising again later this year. Pound seems to be moving in a sideways manner recently and the latest push seems to have come in the wake of positive economic momentum despite elevated borrowing costs. The International Monetary Fund has said that the UK economy will grow slightly faster this year than it did last as the negative effects of high energy prices wane. The IMF estimates UK growth to hit 0.6% this year, and 1.6% next. On the NSE, the GBPINR futures are quoting at 105.71, up 0.74% on the day after a very firm opening. The counter has covered bulk of the losses seen earlier in the week.