020 7898 0500This week’s raft of positive data from the UK continued yesterday as services’ purchasing managers’ index (PMI) data came out with strong figures, surpassing expectations to add to those for construction and manufacturing seen over the past few days. Each of these releases has given strength to the pound, as they have a positive effect on the country as a whole and have resulted in the Organisation for Economic Co-operation and Development (OECD) raising the UK’s growth forecast from 0.8 to 1.5%. As the markets grow confident that the UK’s economic recovery is well underway, this feeds into market speculation as to when the Bank of England may look to raise interest rates, in spite of the new Governor of the Bank of England’s forward guidance policy. This leads in to today’s events, namely the Bank of England’s interest rate decision, and the subsequent statement from the Monetary Policy Committee that sometimes follows. At present, no change in the level of quantitative easing or interest rates is expected, but any comments from the central bank may give an indication as to changing feelings on when interest rates may be hiked and will therefore be closely scrutinized. Get in touch with your trader now for a live price on sterling, as we await the big news of the day.
