Publication of Minutes of the previous meeting of the Bank of England has led to a drop in prices of the British pound. Thus, according to the protocol, the members voted for rate to remain at a record low level of 0.50%, while the volume of asset purchases remained at 375 billion. Meanwhile risks to economic growth in case of rising interest rates are steadily declining. Economic growth remains stable, but in the second quarter of this year, growth may slow down.
It is worth recalling that the risk to the stability of the British currency remains a referendum on Scottish independence, which will be conducted in September. Overall, we maintain our positive medium and long term outlook for the British pound with the objectives of 1.72 and 1.73.