UK sterling remains stable after Bank of England holds on interest rates

UK sterling ends the week stable against major currencies including the US dollar and euro following Thursdays Bank of England announcement that British interest rates would remain at the current level of 0.5 percent, where it has stood since the depths of the financial crisis in early 2009.

Latest UK Sterling Exchange Rates

One British pound currently buys $1.64110 US dollars or 1.20380 euro respectively.

UK Economic Forecasts

Meanwhile, the ECB (European Central Bank) also met on Thursday and likewise held off on any interest rate change. Unlike parts of mainland Europe, Britain’s economy last year staged a surprise turnaround and markets are pricing in at least some chance of a rate hike late this year.

The Bank of England is expected to give at least some clues as to its new guidance plan next Wednesday when the central bank publishes its quarterly economic forecasts and holds a news conference.

“There was an outside chance of the BoE delivering a post meeting update in response to speculation about changes to their forward guidance,” said James Knightley, economist at ING.

“But it now looks as though an update on the situation will come with next week’s inflation report.”

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UK sterling remains stable after Bank of England holds on interest rates