Today is shaping up to be another active day for traders, with the SNB and BoE interest rates decisions and announcements being made early in the day (7.30 am and 11.00 am GMT respectively). This has the potential to affect the already shaky GBP and the go-to safe-haven CHF to a lesser degree. The CHF is considered a safe-haven currency due to its stability, so the effect the interest rate announcement will have on it will most likely be minimal.

For the GBP its seems that at the moment interest rates will remain unchanged, largely due to the BoE’s fear that they might over-estimate inflation which will result in the price of consumer goods out-pacing salaries (an affect that is already being felt in the lower strata of Britain’s society).

BoE Bank Rate History

Source: bankofengland.co.ukSNB Rate History

Source: snb.ch

We will be eagerly watching for the results of these decisions and the effects they will have on the markets at large.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.