The Bank of England has recently published its MPC meeting minutes. Despite the unanimous decisions made by the committee. some of the MPC members are already eager to consider tougher monetary policies for the Britsh central banks.
The MPC unanimously supported the decision to preserve the current volume of asset purchases as well as the current interest rates. Still, 2 - 3 members expressed their willingness to start considering interest rate changes, which resulted in some relevant discussions.
In general, the MPC members gave everyone to understand that the probability of tougher monetary policies is going to be high within the next 2 - 3 years from now.
At the same time, the central bankers expect the British GDP to gain 0.7% in Q2 2015, which is the historical average, Market Leader reports. At the same time, some experts assume that the GDP growth rate in Q1 2015 is going to be upgraded from 0.3% to 0.5%.
As for inflation expectations, the MPC members, expect the rate of inflation to stay fairly low. Still, they predict that it is going to start growing up to the target level in late 2015.
As far as the household income growth rate is concerned, the MPC members are divided over the issue. they also assume that the European and American economies are going to keep on growing in the near future while China nd Greece are likely to stay risk factors for the British economic growth.
FOREX
At the same time, Masterforex-V academy reports that the British Pound is close the finishing the long-term rally against the U.S. Dollar. This is confirmed by the chart below, courtesy of Masterforex-V Academy. The chart shows that GBPUSD has completed wave A/B of wave level H4. On May 22nd, the currency pair was developing sub-wave а(С)/С of level H4 on rebounding from MF pivot 1.5472.
The closest levels of support are the local high at 1.5446 as well as Fibo levels 1.5402, 1.5359,1.5305. A break above 1.5689 will complete the bearish move.
