In a move that wasn't terribly surprising, the Bank of England kept its interest rate steady. However, maintaining the interest rate at its low rate is becoming increasingly difficult for the BOE, since the British economy has been above its inflation target for quite some time now.
Indeed, if the BOE doesn't raise rates soon, there is a chance that the body will lose credibility in the eyes of the public. The Bank of England is in a tough position, since it wants to stimulate growth with the lower rates. However, inflation remains a bit out of control, and the BOE is expected to rein it in with higher rates at some point.
For now, the sterling remains higher against the U.S. dollar in forex trading. The U.S. dollar is being hurt by the latest jobless claims increase, and that means it is falling to rivals sterling and euro. The ECB also kept its rates the same.
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