Sterling dropped sharply before and immediately after the interest rate decision at 12 noon yesterday. However, while the 25 basis point rise may have been seen as relatively dovish, the BoE’s subsequent comments about keeping rates high were not, and GBP recovered to end the day where it started.
The MPC’s decision was a split vote, with two of the nine-member panel voting for a 0.50% rise and only one for no change.
Next week we will hear house price data from the Halifax on Monday morning. Will they follow the Nationwide’s findings of the sharpest falls for decades?
GBP/EUR past year
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