Bank of England has increased the interest rates from 4.75% to 5%, the highest since 2008 May.
The monetary policy committee aims at controlling the inflation rate in the united kingdom, which is higher than in the USA. USA’s inflation rate for the month stands at 0.1% while UK’s inflation rate is 0.7% and USA’s interest rate is at 5.25% while for UK’s is at 5%.
The interest rate decision has seen GBPUSD rally up to above the 1.28250 mark this is after the inflation date was released yesterday plunging GBPUSD to below the 1.27100 mark.
UK inflation rate for the month of May was 0.7% previously 1.2%.
In my opinion, the GBPUSD direction is not well defined and day traders should be patient for a better entry point.
