GBP Rises on Positive BoE Expectations

The British Pound (GBP) is showing a positive performance on Thursday supported by recent remarks by the Bank of England (BoE) Governor Andrew Bailey that suggested the United Kingdom’s (UK) economy will strongly recover from the Coronavirus pandemic thanks to vaccination.

“I really do think that we are going to see a pronounced recovery in the economy as the vaccination programme, as it is doing now, rolls out,” Bailey was quoted by Reuters as saying on Wednesday.

Bailey once again played down the possibility of the BoE introducing negative interest rates.

The BoE governor said that he expects the economic recovery to be challenged during the first quarter (Q1) of the year due to the lockdown and the preventive measures against the pandemic.

The GBP is trading higher for the day against the U.S. Dollar (USD) by 0.42%, with the GBP/USD pair trading at 1.3712.

The pair has been moving today in a range between 1.3652 and 1.3746, mostly in the positive territory.

Against the Euro (EUR), the Sterling is marginally up by 0.04%, with the GBP/EUR pair trading at 1.1284.