The Bank Of England'S Interest Rate Cut Is Expected To Get Hotter.

In fact, this possibility is getting higher and higher. On Wednesday (July 13th), Carney, President of the BOE, said that the decision of the referendum to depart from Europe last month hit the British economy and prompted the Bank of England to act. He again hinted that more stimulus measures would be launched.

On Thursday evening, the Bank of England will issue interest rate resolutions, which is different from the previous one. Due to exit European Union There will be a certain impact on the various aspects of the UK economy and may even lead to economic recession. Market participants expect that at this meeting, the Bank of England may take some loose measures such as interest rate cuts to deal with the possible impact of the euro retreat.

Carney said to members, "if monetary policy The Committee (MPC) judges that if the prospects deteriorate, then monetary policy responses will normally be made if the reaction is in line with MPC's responsibilities. The UK's benchmark interest rate is 0.5%. In the past few years, the Bank of England has not issued a large-scale QE policy. At present, both interest rate reduction and asset purchase have certain operational space.

If the Bank of England raised interest rates on Thursday, it would be a bad thing for the short term, but consider it. Pound Before the sharp decline, the future space is not very big, and the probability of a bad return will be greater. If the Bank of England is not moving this week, it is expected that the pound will continue to remain low.

On the technical side, sterling rebounded this week on the daily chart. The upper 5 and 10 day average of the latest exchange rate stations show that the mid-term rebound has been opened. Judging from the performance of technical indicators, KD is above the signal line, and MACD is about to form a golden fork. It also confirms that the rebound trend of sterling has been established. But the future rebound should not be overly optimistic. There will be strong resistance above 1.35, which will be suppressed by the 20 day moving average and the short-term resistance level will be 1.2800.

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