As was almost unanimously expected the Bank of England have decided to keep the base rate unchanged at 0.75% for the 17th consecutive month. Ratesetters voted 7-2 in favour of no change in rates with Haskel and Saunders once more the two dissenters. As far as the extent to which political uncertainty has been alleviated the Bank said that there is no evidence yet to support this and overall their statement is fairly neutral. The initial reaction has seen the pound move higher with the GBP/USD moving back above the $1.31 handle and looking to recover from its lowest level in a fortnight.
The pound has spiked higher in response with the market bouncing strongly from the 1.3050 level. Source: xStation
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