Bank of England

The debate over whether to introduce negative interest rates at the Bank of England has intensified over the past 24 hours, and the British Pound is reacting by going higher.

A leading member of the Bank of England's Monetary Policy Committee has given a strong signal that negative interest rates in the UK are potentially on their way, a development that could prove to be a significant headwind to the Pound.

The Bank of England Governor Andrew Bailey told MPs it was reasonable to assume the EU and UK could reach a deal on financial services by the end of March.

The Bank of England (BoE) sat on its hand in December when it left interest rates and the parameters of its quantitative easing programme unchanged pending the outcome of Brexit trade talks and decisions on the government's so-far failed containment of the coronavirus.

The Pound has been burdened anew in November by evolving market expectations for interest rates at the Bank of England (BoE) and elsewhere in the world, although this weight around the ankles of Sterling could turn to a tailwind in the event that a Brexit deal is agreed over the coming days or weeks.

UK economic growth forecasts for the UK economy have been downgraded by the Bank of England, while pointing to a more gradual recovery in growth towards pre-Covid levels.

The Bank of England on Thursday announced it would boost quantitative easing by £150 billion, an amount significantly greater than the £100BN markets were anticipating, and economists are saying this won't be the last expansion.

The British Pound's recovery against the Euro, Dollar and other major currencies was stopped after markets reacted to comments by Bank of England Governor Andrew Bailey on the prospect of UK interest rates turning negative in the future, while a looming update on Brexit trade negotiations will increase nerves.

Bank of England's Governor Andrew Bailey has downplayed the prospect of negative interest rates in the future as he sought to downplay the market's rising expectations for future interest rate cuts, an intervention that appears to have offered some support to the British Pound.

The British Pound fell sharply against the Euro, Dollar, Australian Dollar and other major currencies after the Bank of England said it was preparing to engage regulators on lowering interest rates to below 0% in coming months.

The Bank of England forms the highlight for Pound Sterling on Thursday as any signal of imminent interest rate cuts or a boost to the quantitative easing programme could weigh on the currency.

The British Pound went higher against the Euro, Dollar and other currencies following the release of the Bank of England's August policy statement that revealed the Monetary Policy Committee opted to keep interest rates and quantitative easing unchanged by an unanimous vote, while on balance policy makers struck a decidedly 'less dovish' tone than markets had been expecting.

A pessimistic signal would likely lend itself to a weaker Pound, while a more confident assessment that would suggest no further quantitative easing expansions are likely over coming months could contribute to Sterling upside.

The UK economy is currently experiencing a v-shaped recovery, that should be reinforced by a surge in consumer spending when pubs and restaurants open up on July 04, says the Bank of England's Chief Economist Andy Haldane.

The British Pound fell last week, by over a percent against the Euro and 1.3% against the U.S. Dollar, with a major culprit behind the move being Thursday's Bank of England policy meeting.

The Pound-to-Dollar rate volatile Thursday after the Bank of England (BoE) told markets it intends to slow the pace at which it buys an increased stock of British government bonds using newly created money in the coming months.

The Bank of England increased the scale of its quantitative easing programme by £100BN it announced on June 18, taking the programme's total to £745BN.

The British Pound will today take direction from the Bank of England which will announce the outcome of their latest policy meeting at 12:00 BST, with the market expecting another £100BN in quantitative easing to be announced.

There was a spike in volatility in the Pound in mid-day London trade after the Bank of England released their May policy decision and latest suite of economic forecasts.

The Pound was riding high at the top of the G10 league table Wednesday and by many accounts, could be due a further run of gains over the course of Thursday as the Bank of England (BoE) is now on the verge of becoming the only game in town for yield-hungry investors.