BoE Rate Decision(M/M)
The statement in regards to the BoEs decision to either maintain, increase or decrease the key interest rate. Every month a meeting involving the BoE takes place in order to establish the monetary policy. The decision regarding the monetary policy is announced after each meeting. The BoEs Monetary Policy Committee main responsibility is fixing the monetary stance by establishing the overnight borrowing rate, which is incremental in determining the short term rates. This mechanism allows the BoE to attempt to affect price levels. This is done in order to keep inflation within the target range while also maintaining a stable growth in the economy as well as employment. The BoE Rate decision greatly influences financial markets. Changes in rates affect interest rates for consumer loans, mortgages, bond as well as the Pounds exchange rate. Rate increases or even increase expectations cause the Pound to appreciate in value, while decreases cause its depreciation. With every rate announcement, The BoE Monetary Policy Committee issues a statement. The statement is comprised of hints about future monetary policy as well as the BoEs collective outlook on the economy. While the change to interest rates is nothing more than a number, the statement provides clues on plans for the future. When interest rates are involved, the direction of rates is generally of far greater value than its current rate article.