GBP/USD: UK Monetary Policy Summary

The British Pound depreciated against the US Dollar, following the UK Monetary Policy Summary release on Wednesday at 07:00 GMT. The GBP/USD exchange currency rate lost 56 pips or 0.44% after the release. The Pound continued trading at the 1.2900 level against the Greenback after the release.

The Bank of England decided to cut the Official Bank Rate to a target level of 0.25% at an unscheduled emergency meeting.

According to the official release: "Following the spread of Covid-19, risky asset and commodity prices have fallen sharply, and government bond yields reached all-time lows, consistent with a marked deterioration in risk appetite and in the outlooks for global and UK growth. Indicators of financial market uncertainty have reached extreme levels. The reduction in Bank Rate will help to support business and consumer confidence at a difficult time, to bolster the cash flows of businesses and households, and to reduce the cost, and to improve the availability, of finance."