Bank of England summary reveals contradicting policymaker

Note: This section contains information in English only.
Source: Dukascopy Bank SA
At 12:00 GMT on August 4, the Bank of England hiked its Official Bank rate by 0.50% from 1.25% up to 1.75%. In addition, the central bank has published its Monetary Policy Summary.

The Pound lost value due to the details of the monetary policy summary. Namely, one of the committee members did not vote for the 0.50% rate hike. Instead, the policymaker wanted only a 0.25% hike. It indicates that there has been discussion about easier monetary policy.

Quoting the statement: "The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 3 August 2022, the MPC voted by a majority of 8-1 to increase Bank Rate by 0.5 percentage points, to 1.75%. One member preferred to increase Bank Rate by 0.25 percentage points, to 1.5%."

Released Document

Monetary Policy Summary, August 2022

The GBP/USD reacted with an initial minor spike up above the 1.2210 level, prior to starting the decline. Eventually, the rate lost 91 base point or 0.75% over the span of then minutes after the release.

On a larger scale, the pair has been declining in a descending pattern since the start of May. It has been noted that round exchange rate levels like the 1.1800, 1.2000, 1.2200 and 1.2400 are acting as large scale resistance and support.

Initial Reaction

Larger scale situation

Back to articles

Actual Topics

Fri, 05 Aug 2022 12:39:30 GMT

Good US Employment data boosts USD

At 12:30 GMT, the US Dollar surged against all other assets and currencies. The surge was caused by the better than forecast US monthly employment data. In July, US Average Hourly Earnings month on month increased by 0.5% instead of 0.3%. Non-farm Employment Change showed a growth of 528,000, compared to forecast 250,000. Meanwhile, the US Unemployment Rate is at

Tue, 02 Aug 2022 09:24:38 GMT

RBA hikes 0.50%, as expected

On August 2, the Reserve Bank of Australia hiked its Cash Rate from 1.35% up to 1.85%. The 0.50% hike was expected, as most central banks have been tightening monetary policy to fight inflation that has been rampant in the aftermath of the coronavirus stimulus. In addition, the central bank published its Rate Statement. In general, the central bank wants to

Subscribe to "Fundamental Analysis" feed

Suscribir
Para conocer más sobre la plataforma de Trading de CFD y Forex de Dukascopy Bank, SWFX y otras informaciones relacionadas con el Trading,
llámenos o haga una solicitud de devolución de llamada.
Para obtener más información sobre la posible cooperación, por favor llámenos o haga una solicitud de devolución de llamada.
Para obtener más información sobre las opciones binarias de Dukascopy Bank / La plataforma de operaciones de Forex, SWFX y otra información relacionada con el Trading, por favor llámenos o solicite una devolución de llamada.
Para conocer más sobre la plataforma de Trading de CFD y Forex de Dukascopy Bank, SWFX y otras informaciones relacionadas con el Trading,
llámenos o haga una solicitud de devolución de llamada.
Para obtener más información acerca de la plataforma de operaciones Crypto Trading / CFD / Forex, SWFX y otra información relacionada con el comercio,
llámenos o realice una solicitud de devolución de llamada.
Para obtener más información sobre Business Introducer y otra información relacionada con el comercio,
llámenos o realice una solicitud de devolución de llamada.
Para obtener más información sobre la posible cooperación, por favor llámenos o haga una solicitud de devolución de llamada.