The pound has regained some strength but remains volatile against both the euro and the dollar this morning after “Super Thursday”.
Following its monetary policy meeting yesterday, the Bank of England has decided to slow down the pace of its quantitative easing measures which caused a sell-off in sterling.
The BoE kept interest rates at 0.1% but lifted its 2021 economic growth forecast from 5% to 7.25%. Governor Andrew Bailey said, “there is very strong and good news in the state of the economy at the moment” but warned it was important to “not get carried away”. He added that the pandemic has resulted in two years of lost growth.
Markets remain cautious as they await the results of both yesterday’s local elections and the Scottish Parliament elections.
