Sterling fell across the board yesterday as the Bank of England (BoE) unleashed a stimulus package to counteract the negative effects that they have seen since the UK’s decided to leave the European Union. Following a two-day meeting, BoE officials voted unanimously to cut interest rates by 25 basis points to a historic low of 0.25%, marking the first change in this benchmark since March 2009. Citing a dramatic change in the economic outlook for the UK, policy makers also increased their asset purchase program by £70 billion in a move that surprised markets given how large the stimulus package was. Sterling consequently fell sharply against its major trading partners, as BoE Governor Carney warned that the central bank is ready to cut interest rates further if required.
No significant economic data is expected from the UK today, although markets will no doubt still be digesting yesterday’s significant actions from the BoE.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.