The decision on how to set interest rates depends mainly on the growth outlook for inflation. The main goal of the central bank is to achieve price stability. High interest rates attract foreigners who are looking for the best option of “risk-free” incomes, which can sharply increase the demand for the country’s currency. Indicators of rates higher than expected strengthen the GBP, while indicators below expected exert pressure on the national currency. It is predicted that the rate will remain unchanged at 0.75%.
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