The Bank of England opted to leave interest rates on hold at 0.5% yesterday, and maintain its current commitment to GBP175 billion worth of quantitative easing. This move was in line with market expectations and supported sterling exchange rates as the MPC deemed the economy did not need added stimulus measures. The pound gained 0.5% against the euro yesterday.
This morning in the UK, figures show producer prices rose in August for the sixth consecutive month, showing that inflationary pressures persist in the UK economy. Factory gate prices rose 0.2% on the month, forced up by the higher cost of raw materials.
Sterling exchange rates are currently at USD1.6703 and EUR1.1437.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.