Created
: 2025.02.13
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
BoE's Pill urges caution on interest rate cuts
Breaking news
BoE's Pill urges caution on interest rate cuts
New
2025.02.13 14:09
2025.02.13 14:09
2025.02.13 14:09
Bank of England (BoE) Chief Economist Huw Pill told Reuters on Thursday that he "urges caution on interest rate cuts."
Further comments
I do expect we can cut rates further.
Process of disinflation is not yet complete.
Wage deal intentions in the BoE survey show that job is not done.
US trade tariffs could have "quite substantial effects".
Risk of 2nd-round effects from inflation "hump" in 2025 is less than just after covid.
Market reaction
GBP/USD holds higher ground near 1.2500 following these comments, adding 0.31% on the day.
BoE FAQs
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve 'price stability', or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
When inflation is above the Bank of England's target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects - a negative for the Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets - usually government or AAA-rated corporate bonds - from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
Last updated
: 2025.02.13
Related articles
EUR/USD advances as Russia and Ukraine agree to start peace talks
10 minutes agoPBOC: Will implement appropriately loose monetary policy
16 minutes agoGold picks up ascent despite risks residing in the background
21 minutes agoRBA: Rate cuts are likely forthcoming - Standard Chartered
24 minutes agoAUD/USD: Buildup in momentum is fading - UOB Group
27 minutes agoSilver Price Forecast: XAG/USD clings to gains above $32 as traders brace for Trump's reciprocal tariffs
28 minutes ago
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
IEA Russian oil flows so far continue largely unaffected by latest US sanctions
In its monthly oil market report published on Thursday, the International Energy Agency (IEA) raised 2025 global oil demand growth forecast to 1.1 million barrels per day (bpd) from 1.05 million bpd..
New
2025.02.13 18:44EUR/USD advances as Russia and Ukraine agree to start peace talks
EUR/USD jumps to near 1.0440 in Thursday's European trading session.
New
2025.02.13 18:42PBOC: Will implement appropriately loose monetary policy
The People's Bank of China (PBOC) released their fourth-quarter monetary policy implementation report on Thursday.
New
2025.02.13 18:36Gold picks up ascent despite risks residing in the background
Gold's price (XAU/USD) soars again and resumes its rally near $2,920 at the time of writing on Thursday, with Bullion traders shrugging off the United States (US) Consumer Price Index (CPI) data for January released on Wednesday.
New
2025.02.13 18:31Silver price today: Silver rises, according to FXStreet data
Silver prices (XAG/USD) rose on Thursday, according to FXStreet data.
New
2025.02.13 18:30RBA: Rate cuts are likely forthcoming - Standard Chartered
We maintain our view of a 25bps rate cut by the Reserve Bank of Australia at the 18 February meeting. A tight labour market presents downside risk to our view of 100bps of RBA rate cuts in 2025. Swaps are pricing c.22bps of RBA cuts in February, which should limit AUD weakness due to the cuts.
New
2025.02.13 18:28AUD/USD: Buildup in momentum is fading - UOB Group
Austalian Dollar (AUD) is expected to trade between 0.6250 and 0.6310. In the longer run, buildup in momentum is fading; a break below 0.6230 would mean that AUD is likely to trade in a range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.02.13 18:25Silver Price Forecast: XAG/USD clings to gains above $32 as traders brace for Trump's reciprocal tariffs
Silver price (XAG/USD) holds onto gains near Wednesday's high around $32.30 in Thursday's European session.
New
2025.02.13 18:24NZD/USD Price Forecast: Remains subdued below nine-day EMA at 0.5650
The NZD/USD pair continues its decline for the second consecutive day, trading near 0.5640 during European hours on Thursday.
New
2025.02.13 18:12USD: Scope for further correction unless new tariffs announced - ING
On a normal day in FX markets, yesterday's much-higher-than-expected US inflation print should have left the US Dollar (USD) stronger across the board and risk assets under pressure.
New
2025.02.13 17:52Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
