GBP: interest rate and quantitative easing programme decision made today

Sterling closed the day by making some extremely slight gains against the US dollar and euro on what was a very quiet day for currency movements. Perhaps traders were waiting for the Fed’s interest rate announcement that came at 7pm BST.

UK employment dropped for the second month in a row and there was speculation that the employment bubble may have burst. Employment levels are still near record levels so there is nothing to be too concerned about just yet, but certainly something to watch in the coming months. Wage growth increase to 2.3% which was some welcome news, but as it continues to lag behind inflation consumer spending could be affected.

The main event for today is the Bank of England’s meeting, where they will discuss interest rates and whether any adjustments will be made to their quantitative easing programme. It is unlikely rates will be increased this time around, especially as they were raised for the first time in a decade in November, but the Monetary Policy Committee’s meeting minutes will be interesting to read.