The pound is still at strong levels this morning against the euro and the dollar, ahead of the Bank of England meeting, which will take place at midday today.
Interest rates are expected to be kept on hold; however, the markets will be looking out for any comments about when they could be changed. Officials should also talk about their outlook for the UK economy amid the speedy vaccine rollout and the easing of restrictions over the coming months.
Sterling has been supported in recent months by the decreasing expectations for negative interest rates. If the Bank signals that rates could be hiked in the near future, this could be positive for the pound. Equally, if the BoE take a more cautious or ‘dovish’ approach, then sterling could weaken.
It’s a light day for economic data in the UK today, but the latest consumer confidence figures will be released in the early hours of tomorrow morning.
