British Pound Stays Steady Before BoE’s Rate Decision

The euro and the British pound remain the strongest major currencies. Commodity currencies are traded lower. Gold decreased significantly and traded below the level of 1270. WTI crude oil is trading at $49.4 level.

Markets are waiting for the meeting of the Bank of England. It is expected, that the bank will leave the interest rate unchanged at 0.25%. The UK consumer price index fell sharply from 2.9% to 2.6% in June. GDP growth in the second quarter was weak at 0.3% qoq.

Recently, the IMF lowered the UK's growth forecast after weak growth in the first quarter. The IMF expects that the UK economy will grow by 1.7% this year. If the Bank of England keeps the inflation forecast unchanged, this will indicate that politicians still believe that the CPI growth earlier this year was temporary.