The Bank of England (BoE) announced its monetary policy, affecting the movement of GBPUSD on Thursday (March 20, 2025).
In line with the forecasts from Trading Central, the BoE has decided to keep the interest rate steady at 4.5%. Out of the 9 members of the Monetary Policy Committee (MPC), only one member voted for a reduction in interest rates, which is lower than the anticipated two votes. The remaining 8 members agreed to maintain the interest rate.
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This reflects a relatively hawkish stance from the BoE, leading to a rise in GBPUSD to around 1.29794, moving away from the daily low of 1.29359.
Renewed inflationary pressures in the UK seem to have led the BoE towards a more hawkish approach. With 8 votes favoring the preservation of interest rates, it indicates that significant cuts are unlikely in the near future.
Meanwhile, data released earlier today revealed an employment change of 144,000 jobs for January, surpassing the forecast of 80,000 jobs from Trading Central. The unemployment rate remained steady at 4.4%, which is in line with the forecast.
Furthermore, another report indicated that the average hourly wage growth for the three months ending January 2025 was 4.8% year-on-year, slightly below the forecast of 4.9%.
This labor market data appears to be robust, further bolstering the BoE’s relatively hawkish stance.
