The British currency declined in response to the Fed's decision
The Bank of England kept the monetary policy parameters unchanged and said that the economic recovery in the UK is gaining momentum. The British currency declined in response to the Fed's decision to raise interest rates only in 2024. Moreover, the reaction of the US regulator is now focused on results, not on anticipation. The Fed will start talking about reducing bond purchases or raising rates only after the economy has recovered significantly. The Bank of England is likely to assess the growth in the yield of British securities as a positive factor. The vaccination campaign in the UK has already reached more than a third of residents, and this remains one of the main optimistic indicators of growth.
At the same time, the country's economy has been stalling recently, with indicators showing a slowdown in the industrial sector and manufacturing. The pound has been supported by strong economic data in recent months, and the current figures are significantly changing the picture. The Bank of England's position is unlikely to change in the coming months, so macroeconomic publications are coming to the fore. If the indicators remain weak in the coming months, then the British currency will lose all the positions it has achieved.