The pound is weaker against the euro and the dollar ahead of the Bank of England’s monetary policy meeting, which is due to take place later today. Despite strengthening against the dollar yesterday evening, is has weakened this morning.
The markets are expected the Bank of England to announce an interest rate hike of 25 basis points today, so this is largely ‘priced in’. However, if there are any surprises, such as a hike of 50 basis points, this could impact the pound.
PMI figures will be released ahead of the meeting, which are expected to show that the services and manufacturing industries slowed slightly in April.
