The pound is still trading around strong levels against the euro and the dollar this morning, ahead of the Bank of England’s meeting later today.
It is widely expected that officials will raise the interest rate to 0.5%, due to inflation being its highest in nearly 30 years. The markets will also be watching closely for any signs that rates will be raised again later in the year and comments on quantitative tightening. Whether the vote to raise rates is unanimous or not will also be taken into consideration.
With all of these factors at play, we could see volatility for the pound. The interest rate decision will be published at noon.
Before the meeting, PMI figures will be published, expected to show that the UK services and manufacturing industries grew in January.
