By Peter Nurse
Investing.com - The Bank of England decided to keep its monetary policy on hold Thursday, its base rate staying at 0.75%, with members of the Monetary Policy Committee noting signs of improved sentiment within the economy.
At 07:00 AM ET (1200 GMT), GBP/USD was trading at $1.3070, up from $1.3024 immediately before the decision. EUR/GBP was at 0.8426, down from 0.8436.
This decision was finely balanced, with 7 members voting to stand pat and 2 voting to cut.
At the beginning of January, a cut had been the market’s base case, but expectations had been pulled back amid signs of brighter spots in the U.K. economy.
For example, the U.K. employment rate stands at a record high of 76.3%, while the recent purchasing managers’ index indicated the country’s manufacturing and services sectors saw their best month for more than a year in January, as the uncertainty surrounding the general election and Brexit eased. House prices also ticked up strongly in January, according to the lender Nationwide.