Created
: 2025.08.25
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
BoE's Bailey says UK has acute challenge over weak growth -- Reuters
World FX news
Breaking news
BoE's Bailey says UK has acute challenge over weak growth -- Reuters
New
2025.08.25 08:00
2025.08.25 08:00
2025.08.25 08:00
Bank of England (BoE) Governor Andrew Bailey said on Saturday that the United Kingdom faces an "acute challenge" over its weak underlying economic growth and reduced labour force participation since the COVID-19 pandemic, Reuters reported.
Bailey further stated that an ageing population and an apparent illness-driven drop in working by younger Britons increased the need for efforts to boost economic productivity.
Market reaction
At the time of press, the GBP/USD pair was down 0.06% on the day at 1.3515.
BoE FAQs
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve 'price stability', or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
When inflation is above the Bank of England's target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects - a negative for the Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets - usually government or AAA-rated corporate bonds - from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
Last updated
: 2025.08.25
Related articles
USD/CHF eases as Greenback declines amid Fed rate cut expectations
12 minutes agoDonald Trump asks higher court to wave off order allowing Cook to remain at Fed
2025.09.12 04:42Forex Today: Greenlight for a Fed cut, UK GDP in focus
2025.09.12 04:30NZD/USD climbs to near one-month high as Greenback weakens after US CPI data
2025.09.12 03:27Canadian Dollar finds a foothold on Thursday, paring losses on a technical bounce
2025.09.12 02:22Dow Jones Industrial Average soars to new highs after CPI inflation meets expectations
2025.09.12 01:39
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
USD/CHF eases as Greenback declines amid Fed rate cut expectations
USD/CHF chalked in a technical rejection of the 0.8000 handle on Thursday, with the US Dollar (USD) taking a beating across the board.
New
2025.09.12 05:32Donald Trump asks higher court to wave off order allowing Cook to remain at Fed
United States (US) President Donald Trump and his administration have formally asked the federal appeals court to pause a federal order that would allow Lisa Cook to remain at her post at the Federal Reserve (Fed) pending an official probe into accusations of mortgage fraud.
New
2025.09.12 04:42Forex Today: Greenlight for a Fed cut, UK GDP in focus
Inflation prints in the producer and the consumer side in the US further cemented the case for the first interest rate cut by the Federal Reserve, since December 2024.
New
2025.09.12 04:30NZD/USD climbs to near one-month high as Greenback weakens after US CPI data
The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) on Thursday, with NZD/USD extending gains for the second straight session after reversing earlier losses as the Greenback softened in the wake of the latest US inflation release.
New
2025.09.12 03:27Gold slips as traders book profits despite increasing Fed dovish bets
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates.
New
2025.09.12 03:24Canadian Dollar finds a foothold on Thursday, paring losses on a technical bounce
The Canadian Dollar (CAD) found firm bids on Thursday, springing back from a three-week low and chalking in another technical rejection from the 200-day Exponential Moving Average (EMA) against the US Dollar (USD).
New
2025.09.12 02:22Dow Jones Industrial Average soars to new highs after CPI inflation meets expectations
The Dow Jones Industrial Average (DJIA) found a new record high on Thursday, climbing nearly 600 points at its peak and tapping 46,093 for the first time ever.
New
2025.09.12 01:39WTI Crude Oil plunges as OPEC and IEA warn of oversupply risks
West Texas Intermediate (WTI) Crude Oil comes under renewed selling pressure on Wednesday, paring most of the gains registered earlier this week, as investors respond to back-to-back bearish signals from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency
New
2025.09.12 01:19EUR/JPY steadies at 172.65 as ECB hawkish hold offsets BoJ hike risks
The Euro advances against the Japanese Yen during the North American session, up a modest 0.10% after the European Central Bank (ECB) held rates unchanged, as expected.
New
2025.09.12 00:21USD/CAD tumbles from three-week high as sticky US inflation fails to lift the Greenback
The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Thursday, with USD/CAD retreating sharply after testing its highest level since August 22 earlier in the European session.
New
2025.09.12 00:05Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
