BREAKING: GBP drops in spite of Bank of England rate hike

Bank of England announced a monetary policy decision today at 12:00 pm BST. Bank decided to increase interest rates by 25 basis points with the main rate increasing to 1.00%. Such a decision was expected by the market and by the majority of economists but some hinted at a possibility of a 50 bp move. Bank rate vote 9-0 vs 8-1 expected (Haskel, Mann, Saunders voted to raise bank rate to 1.25%

Policymakers said global inflationary pressures have intensified sharply following Russia’s invasion of Ukraine which has led to a material deterioration in the outlook for world and UK growth.

GBP took a hit following the decision. GBPUSD pair is heading towards support at 1.2420. Source:xStation5