BofE, ECB hold interest rates steady

Story link: BofE, ECB hold interest rates steady

The Bank of England held UK interest rates at 5.75 percent on Thursday, as most analysts had expected it would, but the Bank’s Monetary Policy Committee startled with its statement that it is too early to tell what effect market disruptions might limit the availability of credit to individuals and companies.

Sterling held steady at $2.0200 in relation to the US dollar and at ¥232.50 versus the yen in early afternoon trade in London, shortly after the comments were made public, while the UK currency dropped 0.1 percent to £0.6760 in relation to the euro.

The euro was also higher in relation to the yen and the US dollar after the European Central Bank decided to hold interest rates at 4 percent for the time being.

The decision had been expected in light of recent market volatility.

The shared currency added 0.1 percent to $1.3660 versus the greenback and was 0.2 percent higher against the yen to ¥157.30.

Both the Australian and New Zealand dollars also gained ground on the yen, with the Australian dollar up 0.2 percent to ¥94.75 and the New Zealand dollar 0.3 percent higher to ¥79.35.

The US dollar was just 0.1 percent higher versus the yen, to ¥115.30 but traded even at SFr1.2040 in relation to the Swiss franc.