The Bank of England is set to announce its monetary policy decision on Thursday, amid widespread speculation that the central bank will maintain its benchmark interest rate at 4.50%. This decision, marking the second meeting of 2025, follows a prior reduction of 25 basis points last month. The report on this development, prepared by Swissquote Bank Ltd., serves as an informational resource and is not intended as a solicitation or offer for financial transactions.
Market analysts expect the Bank of England to hold steady on its interest rates following adjustments in previous months. This anticipated decision comes as part of a broader economic context where the Federal Reserve has recently reduced the pace of Quantitative Tightening (QT), easing financial conditions. As a result, US equities, bonds, and the dollar have experienced a rebound. Meanwhile, gold prices have seen a slight retreat after reaching a new all-time high on Thursday.
The current economic landscape also reflects trends in employment data. The GBP/USD fell below 1.3000 during the European morning session following the release of UK jobs data. The ILO Unemployment Rate remained consistent at 4.4% over the three months leading up to January, indicating stable employment conditions.
Swissquote Bank Ltd. underscores that their report is not an inducement to engage in currency or financial instrument transactions and is not obligated to provide updates or maintain current information. Recipients are advised to exercise their own judgment when interpreting these insights.