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

BoE monetary policy decision - Overview

Thursday's key focus will be on the Bank of England’s (BoE) ‘Super Thursday’, with the main focus likely to be on the release of Quarterly Inflation Report (QIR) and BoE Governor Mark Carney’s comments at the post-meeting press conference.

At its first meeting of 2019, the UK central bank is widely anticipated to maintain status quo and leave benchmark interest rate, asset purchase facility unchanged at 0.75% and £435 billion respectively. Against the backdrop of persistent Brexit uncertainties, the voting pattern is likely to show a unanimous decision for no changes to the current monetary policy stance. 

Hence, market participants will closely scrutinize the QIR. As Mario Blascak, FXStreet's own European Chief Analyst explains: “Given the slide in oil prices and a tight UK labor market conditions, the Bank of England Governor Mark Carney is expected to revise the short-term inflation forecast downwards while sticking to “gradual and limited” language as far as regarding the outlook for the Bank rate.”

How could it affect GBP/USD?

Ahead of the key event risk, Yohay Elam - FXStreet's own Analyst, offers important technical levels to trade the major: “Some resistance is at 1.2945, which is the confluence of the Simple Moving Average 5-4h, the Bollinger Band 1h-Middle, and the Fibonacci 38.2% one-day.”

“More significant resistance is at 1.3027 which is a juncture of lines including the SMA 100-4h, the PP one-day R3, the SMA 5-1d, and the Fibonacci 23.6% one-month. Looking down, there is some support at 1.2892 where we see the Pivot Point one-day S2 and the SMA 100-one-day converge,” he added further.

Key Notes

   •  Bank of England Preview: All quiet on the rate hike front as MPC lacks Brexit clarity

   •  BoE Preview: Major Banks are forecasting a unanimous on-hold vote on rates

   •  GBP/USD falls to over 2-week lows ahead of BoE

About the BOE interest rate decision

BOE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.