The pound strengthened slightly yesterday and this morning ahead of the Bank of England’s monetary policy meeting today.
Officials are expected to hike the interest rate from 0.5% to 0.75%. However, the markets will be listening for any comments surrounding the decision. If the interest rate isn’t hiked as expected and/or if officials express a more cautious approach to raising interest rates due to the geopolitical climate, the pound could suffer.
Alternatively, officials could deliver a more ‘hawkish’ message than expected. The war in Ukraine could increase inflationary pressures, meaning that more interest rises could be factored in.
