The pound was near one-week lows against the dollar yesterday and was choppy against the euro ahead of the Bank of England’s interest rate decision, which is due to be announced at midday today.
Dovish statements by policymakers and low inflation boosted speculation of an imminent rate cut. However, recent positive data has cast doubt over whether a cut will go ahead. It’s therefore unclear what we’ll hear from the Bank of England today. Markets are currently pricing in a 46% chance of a rate cut.
Ahead of Brexit deadline day tomorrow, the government have said that they will introduce a bill for legislation to end automatic rights for EU vessels to fish in UK waters. Ahead of the final Brexit vote, some MEPs have been bidding farewell to the EU. President of the European Commission, Ursula von der Leyen, told the UK: “We will always love you.”
