Good morning,

The Pound gained across the board yesterday on expectation the Bank of England is going to leave rates unchanged and acknowledge better prospects at midday today. Rising returns on UK Gilts and a vaccination campaign that has already reached more than one in three Brits is seen as a sign of better growth prospects. Analysts are expecting the BoE to drift further away from the European Central Bank and other monetary institutions actively trying to rein in the surge in bond yields. A week after the ECB pledged to speed up the pace of its asset purchases, the UK is expected to maintain theirs.

The Federal Reserves on Wednesday indicated they expect economic growth to improve in the US but also signalled  that there are no expected interest rate hikes for the next two years. Most of the members of the Federal Open Market Committee (FOMC) expect US interested rates to be near zero through 2023.

Have a great day.

William Jones, Senior Relationship Manager.

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