Fecha Actual:March 25, 2023

UK News: Interest Rate and Elections

This Thursday will be a day where two highly relevant events will take place in the United Kingdom. On the one hand, the economic event will be the announcement by the Bank of England of the decision on the interest rate and, on the other hand, the political event, in which parliamentary elections will be held.

In the economic event of the week for the United Kingdom, the BoE is expected to determine the interest rate and the bond purchase policy.

The current interest rate is 0.1%. Given the influence that a change in the interest rate may have on the Consumer Price Index and consumption, no changes are expected for this new announcement.

The reason is that even the inflation rate remains below the bank’s goal. In other words, it is at 0.7% compared to the 2% expected.

Although no changes in the interest rate are expected, the focus is on the bond purchase policy. The expectations, this time, is that the BoE applies a tapering or reduction in the rate of purchases.

As for the political event, elections will take place this Thursday in Great Britain, with 143 English councils, the parliaments of Scotland and Wales and the mayor of London. In the midst of these elections, tensions for Scottish independence are rekindled. Prime Minister Boris Jhonson declared that the majority of the population does not consider that it is an appropriate time to hold a new referéndum.

However, in one of the multiple scenarios resulting from the elections, it could be seen that a result in favor of the Scottish National Party (SNP) would imply that it submits a new request to call an independence referendum. This application should first be approved in London.

Projected prices:

GBPUSD closed for sell. Sells are suggested above 1.3910 and 1.3920.

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