The British Pound plummeted sharply against the Greenback, as the Bank of England announced changes in its monetary policy. Data hurt the GBP/USD currency pair, putting the rate 0.77% or 102 base points down to the 1.312 mark, close to the monthly low.
The Bank of England raised interest rates from 0.25% to 0.50% for the first time in ten year, adding that further increases would be determined by the outcome of Brexit negotiations and how the country prepares to quit the European Union. Britain’s economic expansion slowed markedly since the Brexit vote, the factor delaying the rate hike, but the BoE Governor Mark Carney feared that Brexit could aggravate already weak productivity and make the economy prone to high inflation.
