What, no rate cuts?

Posted Monday, July 18, 2016 by
Skerdian Meta • 1 min read

Today is a pretty quiet day regarding the economic data. The only important economic event for the forex market is the speech at the Resolution Foundation in London from the BOE member Martin Weale. It wouldn´t normally be of this importance but given the Brexit referendum, the forex market is curious to hear any comments on the forthcoming monetary policy from the Bank of England.  

The forex market was expecting an interest rate cut in July after the exit vote but it didn´t happen so everyone thought that the BOE would definitely cut the interest rates in August. Now we hear Weale that the UK economy has been in a good shape so far and the wage growth has been satisfactory, so a rate cut is not needed at the moment.

Of course, he is just one of nine BOE members and he did mention that, but we can sense the general feeling at the BOE from his comments. They are not really in favour of an interest rate cut, unless they see the things deteriorate, which isn´t happening at the moment. 

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