{"id":75145,"date":"2025-03-20T12:10:08","date_gmt":"2025-03-20T01:10:08","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=75145"},"modified":"2025-03-20T12:18:09","modified_gmt":"2025-03-20T01:18:09","slug":"trade-cable-on-the-bank-of-england-interest-rate-decision-2","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/trade-cable-on-the-bank-of-england-interest-rate-decision-2\/","title":{"rendered":"Trade Cable on the Bank of England Interest Rate Decision"},"content":{"rendered":"\n

The Bank of England\u2019s Monetary Policy Committee (MPC) will announce its interest rate decision later today and is widely expected to keep the Official Bank Rate on hold at 4.50% after cutting rates in February. However, traders anticipate significant market movement around the event, particularly with the release of the Monetary Policy Statement and Governor Andrew Bailey\u2019s press conference. A key focus will be on inflation, especially after January\u2019s data showed a higher-than-expected rise to 3%. Additionally, the MPC\u2014along with the broader market\u2014has been closely monitoring Donald Trump\u2019s tariff plans, and traders will be keen to see how much attention is given to their potential impact.<\/p>\n\n\n\n

Cable has seen a strong run this year, climbing nearly nine big figures from a mid-January low below 1.2100 to recently topping out just above 1.3000. It is likely to be trading near these highs ahead of today\u2019s announcement. The biggest impact on the currency will, of course, come if there is a change in interest rates. However, since most of the market firmly expects no change, volatility is more likely to arise from the policy statement and press conference.<\/p>\n\n\n\n

If the MPC leans towards inflation concerns\u2014interpreted as a less dovish stance\u2014Cable could break recent highs and challenge 2024\u2019s peak just above 1.3400. Conversely, if the focus shifts more toward global growth risks and a dovish outlook, the pair could retreat into its range, with initial support around 1.2796 and the 200-day moving average.<\/p>\n\n\n\n

Key Technical Levels<\/h3>\n\n\n\n