Tatsiana Ketrar
The Bank of England’s MPC held a meeting against the background of the UK’s gloomy economic perspectives. 2 out of 10 MPC members - Spenser Dale and Martin Weale - voted for increasing the interest rate by 0.25% once again in order to curb high inflation.
Most members supported further ‘soft’ policy.The UK’s consumer demand remains rather weak because against the background of considerable public spending reduction aimed at cutting the country’s budget deficit. Ben Broadbent, anew MPC member and a former economist for Goldman Sachs, supported the majority that voted for leaving the interest rate unchanged. Most MPC members are sure that the weak growth will last much longer than expected. All of them are mainly concerned about the high rate of inflation (4.5%).
Some analysts are sure that the MPC is not going to toughen the monetary policy in the near future.
FOREX.
The British Pound keeps losing value against the US Dollar and the some major currencies. The experts of the Department of Masterforex-V TS explain that GBPUSD keeps developing the ABC pattern of Daily1 against the long-term (major) uptrend.
The price has formed a bearish FZR of Daily1, which indicates the initiation of wave a(C ) or C of Daily1. The British Pound will gain support around 1,5900 and 1,5790 (the match of significant Fibo levels). A rally along the major uptrend can be considered after the price breaks above the MF pivot and sloping channel (as shown below):
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Tatsiana Ketrar
