Sterling makes ‘broad gains’ after MPC announcement

<p>Interest rates have been held in the UK once more.</p>

Sterling rebounded in the UK following the announcement from the Bank of England that it will be holding the base rate of interest for another month.

Interest rates in the UK have been at 0.5 per cent – a record low for the country – since March 2009 and a change appears no closer to being implemented.

According to Andy Scott, premier account manager at foreign currency exchange brokers HiFX, sterling made "broad gains" in the hours after the news from the Bank of England.

"The pound rose by around 0.5 per cent against both the euro and the US dollar following the announcement," he said.

Mr Scott added it is possible leader of the Bank of England Mervyn King has lost authority over the committee after announcing he is stepping down during 2013.

Sterling is currently worth $1.51, with Jason Gaywood, director of corporate premier services at HiFX, predicting the pound is due for a resurgence.

Learn about the sterling and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.