Forex Europe Session News – Bank of England Interest Rates steady at 0.5%

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The Bank of England has announced its long awaited interest rates decision. The rates have remained steady at 0.5% a decision which was vastly awaited. Following the announcement the sterling remained unchanged. The British currency was traded at 1.65 against the US Dollar while the Euro against the Sterling was at around 0.8990. Furthermore the British Bonds (gilts) did not significantly move following the announcement.

This is a sign that the UK economic recovery is losing ground and combined with weak PMI figures the Sterling is struggling. The producer price index for the UK which will show more inflation data for the UK is to be announced tomorrow and could put more pressure towards an interest rate hike.