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Pound Supported After BOE Holds Interest Rates, Good Gains In GBPINR Futures

Published on Nov 03, 2023 16:15

The British Pound stayed supportive above 1.2200 mark against the US dollar today as markets tried to assess the near term interest rate trajectory following the interest rate decision yesterday. The GBPUSD currently quotes at 1.2220, up marginally on the day and not far from a one week high. On the NSE, the GBPINR futures are up 0.17% at 101.79. Economic data was mixed today. UK service providers experienced another reduction in business activity during October, although the downturn was only marginal and slightly less marked than in September.

The degree of optimism among services companies regarding year ahead growth prospects was the lowest in 2023 so far. At 49.5 in October, the headline seasonally adjusted S&P Global / CIPS UK Services PMI Business Activity Index was up fractionally from 49.3 in September and above the earlier `flash` reading of 49.2.

Meanwhile, the Bank of England or BOE kept its key interest rate unchnaged yesterday. The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC voted by a majority of 6–3 to maintain Bank Rate at 5.25%. Three members preferred to increase Bank Rate by 0.25 percentage points, to 5.5%.

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