This morning sterling is still moving steady against the euro and has strengthened slightly against the dollar ahead of the Bank of England’s interest rate decision this afternoon.
Borrowing costs could soar for UK consumers as markets are expecting interest rates to rise by 50 basis points, bringing the rate to 1.75%. The last increase saw rates rise by 25 basis points, which brought the rate to 1.25%.
If expectations are met today this would be the largest single hike in 27 years. Markets will be keeping a close eye on the BoE’s decision later this afternoon.
In the eurozone, poor economic data is weighing on the euro. Both PMI and retail sales for the eurozone were disappointing.
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