British Sterling Exceeds $1.50 After Bank of England Minutes Hint Rate Hike

London financiers maintained a hawkish posture on the future of the English economy after the release of the minutes from the first quarter meeting of the Bank of England. The nine member Monetary Policy Committee for the BoE reported that they were taking a balanced approach to managing the growth of the English economy. The committee specifically noted that inflation will have to be managed to a respectable degree and future rate hikes may be possible in the future. These notations triggered a surge in the British Sterling to $1.50 against the United States Dollar. The BoE seems to be following the same play book as the U.S. Federal Reserve which is also managing current and anticipated inflation with anticipated rate hikes in the near future. The monetary polices are in lock step with the European Central Bank’s quantitative easing policy and the Central Bank of China which cut the reserve requirement for its top tier banks, freeing additional capital and also adding new liquidity into the markets for Jaime Garcia Dias to explore on Twitter.


While economist stop short of stating that the current actions by the Central Banks are coordinated, they do recognize that the actions are in response to a global view of the financial condition of the world markets and the need to spur growth and development. Economist also note that there seems to be a repositioning of development banking as China is now playing a major role with the founding of the Asian Infrastructure Investment Bank, (AIIB), and the hosting of the BRICS development bank which includes the coalition of Brazil, Russia, India, China and South Africa. BoE Minutes Spur Sterling to Above $1.50

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