- MarketPulse - https://www.marketpulse.com -

ECB Raises Interest Rates; BofE Holds Line

The euro was boosted today by news that the European Central Bank (ECB) was lifting the benchmark interest rate by 25 basis points to 1.5 percent. The move was not unexpected as inflation was last recorded at 2.7 percent – well above the ECB’s target rate of 2 percent.

The Bank of England on the other hand, voted to maintain UK rates at the current record low rate of 0.5 percent. The growing interest rate gap between the two currencies could see investors favoring the euro over the pound.

Source: BBC News [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Scott Boyd

Latest posts by Scott Boyd (see all [4])