The pound is weaker this morning, initially falling around 0.50% against the euro and 0.30% against the dollar after the Bank of England expressed a relatively calm attitude towards raising interest rates.
The BoE lifted its inflation forecast but voted to keep its stimulus programme and interest rates as they are. The Bank gave nothing away as to when it might raise rates. Markets seemed disappointed at the dovish comments.
Yesterday also saw the government’s latest travel announcement. A number of countries – such as Spain’s Balearic Islands, Barbados and Madeira – have been added to the UK’s ‘green watch list’. This means that quarantine-free travel to these countries will be allowed from 30 June, but they are at risk of moving down to the amber list. Malta was the only new country added to the ‘green list’.
