Another punch for the British pound

The British pound suffered further losses last week

The main reason was the results of the Bank of England (BoE) and the latest forecast for the British economy.

Although British central bank officials have announced the need for a rate hike, this step has not taken place yet. The basic interest rate remained at the current 0.75 percent. In the future, however, rates may actually increase. It will depend on the development not only of the British economy, but also on development in global trade markets and the specific form of Brexit.

The BoE also published a current outlook for the development of the British economy. The original forecast envisaged a 0.2% quarter-on-quarter growth in British GDP, but the new outlook already calculated with stagnation (ie 0% growth).

Following these events, the value of the British pound against the dollar fell by 0.4 percent and the GBP / USD pair traded at 1.2700. The pound fell against the euro by 0.5 percent and the EUR / GBP currency pair traded at 89.22.


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