The Bank of England voted to hold interest rates at 4.75%, as expected and saw next to no response off the initial announcement, however what came as a surprise somewhat was that 3 out of the nine members of policy makers voted for a cut. This clearly shows that it is not all in perfect harmony.
The statement followed was similar to the previous statement and suggests that no major change to the current stance has yet to emerge, with the majority of MPC members showing to refrain from changing course.
Over in the US, the FED cut rates as expected by 25 basis points last night and as mentioned previously, however signals were given that they would only cut rates twice next year which went against the markets expectations of three. This saw the Dollar make advances across the board but was unable to make ground against Sterling.
When analysts looked at a one day and one week period of trading, the GBP is currently the second-best performing currency out of the G10.
Economists will now look to the first quarter of 2025 for any significant changes that may take place.
-Oakleigh Exchange Partners-