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Earlier today, the Bank of England (BoE) revealed it was keeping the cash level at a record low of 0.5 per cent and this means it will be almost two years since the base rate last differed.
Forex traders might be keen to note sterling decreased to $1.6012 soon after the Monetary Policy Committee's announcement, but the cash rate was widely expected to remain the same.
Chris Turner, head of FX strategy at ING, pointed out the money markets had stated there was a 20 per cent chance of a rise, but not many actually though the BoE would up the level.
He added: "The inflation report from the BoE is due next Wednesday and we expect them to pretty hawkish there."
Before the announcement, sterling was down by 0.2 per cent against the dollar.
Posted by Greg Secker
