Sterling fell after the decision on interest rates

Pound fell after the Bank of England a second consecutive month, decided to leave interest rates unchanged at 4%.

Despite the decision, expectations of an increase in May, not diminished, given the growth in consumer demand in Britain, particularly in the housing market.

"After an immediate drop after the announcement of the decision of the Bank, Sterling seems to have returned to equilibrium," said Chief Economist, "ECU Group" Neil McKinnon.
Following the announcement of the decision, sterling fell to 1.8324 marks per dollar from 1.8376 before this level.

Analysts believe that the Bank of England may want to postpone the increase in rates until its next forecast for inflation and growth in May.

"Sterling is not sold in large volumes because people look forward to an increase in rates next month," said currency strategist "ABN Amro" Aziz MakMahon.

Bank of England raise rates in November and February, each time by a quarter point. McKinnon of "ECU Group" has warned that the Bank of England may have missed an opportunity today to send a signal to borrowers that continue to take advantage of historically low interest rates.

"I guess if this continues, the Bank of England will probably have to act more aggressively," he said.

On the other hand, the euro was under pressure after continuing bad economic news from Germany is the largest economies in the Euro-zone.

German industrial production in February, taking into account seasonality, fell by 0,7% against the expected growth at 0.3%. The single currency also remained under pressure because of the troubles arising from the head Bundesbank Ernst Vilteke.

Vilteke came under pressure to resign after it became known that he had allowed "Dresdner Bank AG" to pay for a four-day stay at a luxurious Berlin hotel for himself, his wife, their three-year son and his 25-year-old eldest son with his girlfriend .

"The technical factors include the closing of positions before the long Easter weekend, which also helps the dollar regain some of its recent losses," said chief currency strategist "HSBC USA" Mark Chandler.

based on Fxstreet.com