BOE reduces benchmark rate to 1.00%

The Bank of England has reduced interest rates to 1.00% in an effort to boost lending and encourage consumption in the UK. The Central Bank cut 50 basis points to a record low after the UK had entered into a recession. The rate was 5.00% back in October and in an aggressive stance by the BoE has been reduced to stem the shrinking of the UK’s economy.

European Central Bank

ECB President Jean – Claude Trichet declared that the Central Bank will not reduce rates to zero at this state, after informing the press that the Bank would keep the rate at 2.00%. This caused the Euro to drop to a two month low versus the USD. Analysts expected a 50 basis point, and Trichet has remarked that the ECB might cut rates to the 1.5% level in the Bank’s meeting in March.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza