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FXstreet.com (London) - EUR/GBP remains mildly bearish after both the Bank of England and the European Central Bank did as expected and held rates.

Rate hold from ECB

The ECB held the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.25 percent, 0.75 percent and 0.00 percent respectively.

The rate announcement will be followed by an ECB monetary policy statement and press conference at 13:30 GMT at which it is expected the ECB president Mario Draghi will try and jawbone the euro down with EUR strength continuing to drag down any inflation within the economic area.

Similar BoE inaction

The ECB decision followed the expected Bank of England announcement that it is interest rates at its record-low 0.5 percent. It also kept its asset purchase facility at GBP375bn.

There had been recent speculation that the BoE may move to hike rates earlier than forecast. However, this is something that Carney will be quick to quash.

Carney has been consistent in stating that the BoE will move to hike rates only when the unemployment rate falls below 7 percent and has stressed that the 7 percent rate constitutes a threshold and not a trigger for hikes, suggesting he may let job growth run further before hiking rates.

EUR/GBP holds onto gains

EUR/GBP remains slightly bearish, declining from session highs at GBP0.8276. The pair is currently trading at GBP0.8271, still up 0.21 percent on the open of GBP0.8257.
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