GBP/BoE – Sterling jumped to December highs on Thursday after the Bank of England surprised investors by hiking interest rates by 15 basis points, taking the Official Bank Rate to 0.25%, with only Tenreyro dissenting in a vote split of 8-0-1.
Commenting on the BoE’s decision, Berenberg noted that “having first guided markets into betting on a rate hike in November, the Bank of England today defied market expectations again by finally pulling the trigger. We expect a further 25 basis point hike in February 2022 to take the bank rate to 0.5%.”
Meanwhile, IG added that “the announcement does look like a bit of a panic move – the Bank of England is probably regretting its decision not to move last month when Omicron wasn’t even an issue.”
EUR/ECB – The ECB kept interest rates on hold at their December meeting but did announce the end of its pandemic emergency asset-buying scheme, with the central bank looking to begin tapering from March onwards. However, the ECB also promised support as needed via its long-running Asset Purchase Programme, confirmed its relaxed view on inflation, and signaled that any exit from years of ultra-easy policy would be slow.
Commenting on the BoE’s decision, Berenberg noted that “having first guided markets into betting on a rate hike in November, the Bank of England today defied market expectations again by finally pulling the trigger. We expect a further 25 basis point hike in February 2022 to take the bank rate to 0.5%.”
Meanwhile, IG added that “the announcement does look like a bit of a panic move – the Bank of England is probably regretting its decision not to move last month when Omicron wasn’t even an issue.”
EUR/ECB – The ECB kept interest rates on hold at their December meeting but did announce the end of its pandemic emergency asset-buying scheme, with the central bank looking to begin tapering from March onwards. However, the ECB also promised support as needed via its long-running Asset Purchase Programme, confirmed its relaxed view on inflation, and signaled that any exit from years of ultra-easy policy would be slow.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.