Bank of England interest rate forecast to remain at 0.50%

NEW YORK (Forex News Now) – The Bank of England is due on Thursday to determine monthly interest rates, in the day’s main realtime forex news event affecting the British pound.

Led by Governor Mervyn King, the nine-member panel is expected to keep the benchmark rate of interest at 0.50%, the same rate at which it has been since they voted to reduce it from 1.0% in March 2009.

The bank is scheduled to make its decision at 12:00 P.M., GMT; as such, it is likely to dominate European afternoon currency market trading.

It will follow the release of a monthly report on Britain’s trade balance by National Statistics earlier in the day, which should also have an impact on trading.

According to GBP/USD analysis, a surprise rise in the interest rate could lift the currency pair toward short-term resistance around the opening price of Nov. 22, 1.6000.