Interest Rates For GBP and EUR

Today at midday the Bank of England (BoE) will announce their latest interest rate decision and whether they will amend their currenct Quantitative Easing (QE) programme. Following this at 12:45pm the European Central Bank (ECB) will also announce their latest interest rate decision, both of these announcements could cause major currency movement. In the UK it is expected that interest rates will remain on hold however there is an outside chance that the QE programme will be amended which could spark some Sterling volatility today. In the past just the mere mention of QE has caused Sterling weakness but should the BoE think that there is cause to reduce the QE programme than we may see some Sterling strength and any guidance from Governor of the BoE, Mark Carney will also be carefully watched. Since his installation as the Head of the BoE Mr Carney has proactively provided guidance on what the Central Bank may do, for example he stated that interest rates in the UK are unlikely to move until unemployment falls to 7% or lower. So, while we may see no change in interest rates or QE but that does not necessarily guarantee a quiet announcement!

Meanwhile in Europe, there is the outside chance that the ECB will cut interest rates following previous comments from Mario Draghi, Head of the ECB. There is also on top of this the chance that the Bank may offer cheap long term loans to the EU banks again in an effort to stabilise the banking sector and effectively pump more money into the economy. Like the UK there may be no change in interest rates but there is a press release scheduled for 45 minutes after the announcement and this could again cause some excitment in the markets. Comments from Draghi about further monetary stimulus or possible interest rate cuts in the future could spark major moves for the Euro so today could be highly volatile and a key day for anyone with a GBP EUR currency requirement.

If you would like to be kept up to date with the latest news from the two interest rate decisions today then either call us on 0800 328 5884 or alternatively email me on trh@currencies.co.uk