When is the BoE rate decision and how could this affect GBP / USD?

BoE Monetary Policy Decision – Overview

On Thursday, the focus will be on the Bank of England's (BoE) monetary policy decision, which will be accompanied by the minutes of the March meeting. It is generally expected that the UK central bank will maintain the status quo and leave the benchmark interest rate, the badet purchase facility unchanged, at 0, 75% and 435 billion pounds respectively. Given the recent chaos caused by Brexit, it is likely that the voting pattern indicates a unanimous decision not to change the current stance of monetary policy.

As Yohay Elam explains, the FXStreet badyst: The growing uncertainty about Brexit has paralyzed all policy making in the UK, including the lead institution. by Governor Mark Carney. The United Kingdom will leave on March 29 unless an extension is granted. The latest is that the EU will decide a deadline next week, at the very last minute, and the Prime Minister still hopes that Parliament approves the agreement. The fears of a Brexit without agreement increase.

How could this affect GBP / USD?

The pair traded with a bearish bias around lows a week ahead of the key event risk, although the reaction to the BoE announcement seems more likely to be limited. For its part, Yohay offers important technical levels to watch: "1.3135 is the confluence of Fibonacci 38.2% one month, support Pivot Point 1 and Fibonacci 61.8% a week."

"Looking up, the resistance is much lower than the support lines mentioned above. The first hurdle is 1.3286, where we see the meeting point of the previous daily record and the Fibonacci summit at 23.6% a week. The high target of the pound is 1.3355, the point of convergence for one day for Pivot Point and the previous monthly record, "he added.

Key notes

• BOE preview: no change at the moment, but Carney could impact GBP / USD in two ways

• BoE overview: Big banks do not plan any fireworks today

• GBP / USD: Pound looks good despite Brexit crush – Confluence Detector

About the BoE Interest Rate Decision

The BoE interest rate decision is announced by the Bank of England. If the BoE is keen on the inflationary outlook for the economy and raises interest rates, it is positive or bullish for the GBP. Similarly, if the BoE has a dovish view of the UK economy and retains the prevailing interest rate, or lowers the interest rate, it is considered negative or bearish.