The Bank of England (BoE) surprised sterling investors on Thursday by not raising interest rates. “It was a huge goal,” criticized investment strategist Michael Hewson of brokerage firm CMC Markets. After all, the UK central bank has signaled an increase in recent weeks. BoE boss Andrew Bailey missed the opportunity to restore confidence in his house. In response to the interest rate decision, the pound fell 1.4% to $ 1.3491 and 0.9% to 1.1679 euros. Conversely, investors took advantage of UK government bonds. This pushed the ten-year stock yield to 0.948 percent. In their wake, their German counterparts yielded minus 0.223%, after minus 0.167% the day before.
Against the dollar, the euro fell to 1.1541 dollars. The day before, the common currency had passed the $ 1.16 mark after the U.S. Federal Reserve began phasing out its $ 1 billion asset purchases. The Fed wants to take its time with rate hikes, central bank chief Jerome Powell has confirmed. As a result, the dollar was under pressure.
Meanwhile, the price of oil has been on a roller coaster ride. On the one hand, “Opec +”, which also includes other producing countries such as Russia, is not yielding to international pressure for a more rapid expansion of production and is still increasing its quotas by 400,000 barrels per day. On the other hand, broadcaster Al Arabiya reported that Saudi Arabia’s oil production would exceed ten million barrels per day for the first time since the start of the coronavirus pandemic. The price of the North Sea Brent variety initially rose 3% to $ 84.49 a barrel, on the evening the price slipped 1.7% into the red to $ 80.63.