Bank of England (BoE) news

The Bank of England (BoE) is the central bank of the United Kingdom. Its primary objective is to maintain price stability, targeting a 2% inflation rate. The BoE uses interest rate adjustments and quantitative easing to influence the economy and achieve its inflation target. It also plays a key role in ensuring financial stability in the UK.

GBP/USD - BoE hikes rates and raises forecasts

OANDA Senior Market Analyst discusses GBPUSD in light of the Bank of England interest rate decision and US inflation data.

11-05-2023 18:57 GMT by Craig Erlam

BoE more optimistic on the economy after raising rates by 0.25%

The Bank of England hiked interest rates by another 25 basis points today, taking the base rate to 4.5% while making significant tweaks to their economic forecasts. The MPC is now of the belief that the economy will avoid recession this year and significantly revised up its GDP forecast, albeit to mild growth. What's more, its forecast for inflation was also much higher which may indicate it will have to go further and hold for longer in order to get back to target.

11-05-2023 13:42 GMT by Craig Erlam