The Central Bank of England will hold an interest rate decision meeting on Thursday. In this meeting, the members of the Central Bank of England will decide whether to increase the interest rate by 25 or 50 points. In addition to the interest rate decision, the BoE’s comments on the economic outlook and the Rand’s future interest rate decision, as well as the split vote, will have a major impact on the value of the pound. GBP/USD could reach the 1.25 level if the BoE does not announce a shocking decision, as the Fed’s monetary policy decision on Wednesday prevented a massive sell-off in risk assets.
What do analysts expect?
It seems unlikely that the already ambivalent members of the interest rate policy committee will agree to take just one step back from raising rates or raise rates by 50 basis points. 65% of the markets are confident that rates will be raised by 50 points. The main reason is high inflation, stronger than expected wage growth and amazing flexibility of the domestic economy as well as the growth of the European economy.
