The pound could be impacted by news from the Bank of England’s monetary policy meeting, with a statement due to be released around midday today.
It is widely expected that the Bank will raise the interest rate from 0.5% to 0.75%, however, the markets will be listening closely to any comments from officials. Any indication of further rate hikes this year could strengthen sterling.
Alternatively, a more ‘cautious’ message, perhaps driven by the uncertainty surrounding the conflict in Ukraine, could cause the pound to weaken.
The Federal Reserve rose interest rates by 0.25% yesterday as expected largely due to high inflation, which has now reached 7.9% in the US.
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