GBPUSD. BoE Interest Rate Decision and Inflation Report (4 August 11:00)

This week the chairmen of the Bank of England will meet again to discuss the possibility of lowering the refinancing rate by 25 basis points (from 0.50% to 0.25%). Last time, unexpected to many experts, the resolution was to keep the rate unchanged. Only one in ten BoE members voted for a cut-back, which had a positive effect on the Sterling.

Expected results of voting for or against rate cut by representatives of Bank of England:

If the refinancing rate is cut this time, it will weaken the Pound short-term.

Experts believe that most likely representatives of Bank of England want to be ready to confront the economic difficulties in advance, cause no changes have to be done if to analyze the current economic situation.

Latest preliminary GDP data:

CPI for June and Year-over-Year:

Unemployment Rate for May:

GBPUSD chart:

According to the indicator of technical analysis “Awesome Oscillator” there is still a flat rate movement on GBPUSD D1 chart. Recently the zero-line of the indicator was intersected and it means that further upward rate movement is possible.