Corporate foreign exchange news

BoE decision could impact forex dealers

Thursday, 11 August 2011 08:54:09 GMT

Posted by Zeb Bham
Forex dealers may be impacted by the Bank of England's (BoE's) decision to lower its growth forecast for this year to 1.4 per cent.
It had previously forecast Gross Domestic Product (GDP) would increase by 1.8 per cent.
Mervyn King, governor of the BoE, said: "There are a number of headwinds to world and domestic growth over the forecast period, not least the private and public debt overhang."
Analysts may now be expecting interest rates to be held at the record low of 0.5 per cent for the foreseeable future, although the BoE has not commented on whether this will be the case.
This follows recent research conducted by the Confederation of British Industry, which indicated that having a less optimistic outlook than the previous quarter is something 28 per cent of small and medium-enterprises admitted to.
It found that 18 per cent of firms surveyed believed they were now better off.
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