Pound Rallies After HPI Report & BoE Meeting

The Great Britain pound rallied today following a positive report about house prices and the monetary policy decision made by the Bank of England. The currency dropped to the lowest level since July 2013 against the US dollar intraday but bounced to the opening level as of now.

The BoE decided to keep its monetary policy unchanged at today’s meeting. The central bank announced:

The Bank of England’s Monetary Policy Committee at its meeting today voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

As for economic data, the Halifax House Price Index rose 0.9 percent in December, three times the predicted rate of 0.3 percent.

GBP/USD was down from 1.5108 to 1.5034 intraday but rebounded to 1.5114 as of 16:45 GMT today. GBP/JPY advanced from 180.13 to 180.78.

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