Some optimism from the Bank of England helped to push the Pound Sterling higher against the Euro and US Dollar during early London trade today. While the BoE did not make any policy changes, largely in line with expert opinions, they did suggest that Britain could see some economic recovery next year, suggesting 15% was not an impossibility. In the interim, the statement indicated that the central bank was prepared to act in the event the repercussions of the Coronavirus worsen. The BoE expects that the economy could see a 14% plunge this year, followed by next year's recovery. Analysts say that while the BoE's 14% forecast is dire, it is still not as bad as some analysts, even those at the UK's Office of Budget Responsibility, have recently predicted.
In London trading as of 11:17 am the GBP/USD was priced at $1.2376, a gain of 0.2942% and off the session peak of $1.24189; the low was recorded at $1.23086. The EUR/GBP was lower at 0.8721 Pence, a loss of 0.2836%; the pair has ranged from 0.87083 Pence to 0.87685 Pence in today's trading session.
QE Outlook Expansive
In the vote count at today's meeting, two of the voting members voted to increase the central bank's bond buying firepower. Experts believe that the 200 billion in asset purchases that had been announced may be fully depleted soon. Some analysts say that the encouraging signs that members are already planning for another major injection may have also helped to push the Pound higher. What is continuing to weigh on the currency, they say, is the slow reopening of the UK in the wake of the Covid-19 pandemic.