Bank of England: what did the vote tell you?
The Monetary Policy Committee's decision on 17 September came with a split vote and a statement the market read closely (preview).
Let's talk it through:
- what the vote split tells you about the path ahead
- how sterling behaved around the announcement
- which part of the statement changed your view
Reasoning only, please. The interest rates guide is the background.
Background: How interest rate decisions move currencies
Central bank decisions are the biggest scheduled events in forex. Why rates matter, why a hike can weaken a currency, and what to read beyond the decision.
Does a rate hike always strengthen a currency?
No. If the hike was fully expected, it is already in the price. The currency can even weaken if the central bank signals that it won't raise rates further.
What does hawkish mean?
Leaning towards higher interest rates to control inflation. A hawkish surprise usually supports the currency.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…