Sterling is stronger against the euro and the dollar again this morning due to news of infection rates coming down and the vaccine rollout underway. The pound’s boost, however, was kick-started at the beginning of the week when governor of the Bank of England, Andrew Bailey, confirmed that interest rates were unlikely to be cut at their next monetary policy meeting.
Bailey suggested that negative rates won’t be necessary if the economy starts to recovery this year. Economic recovery is strongly tied to the pace of the vaccine rollout, which aims to vaccinate all vulnerable people in the UK by the middle of February.
There is no economic data for the UK today, but tomorrow industrial production, manufacturing production and GDP figures will be released.
