GBP/AUD is actively moving upwards in early trading on Friday, though it crashed yesterday after the Bank of England (BoE) released its interest rate decision. The pair is trading now at 1.8621, up 0.26% as of 5:43 AM UTC.

Despite today’s spike, the price continues to move inside a bearish trend that started in mid-October.

Bank of England Maintains Interest Rate

On Thursday, the BoE left the interest rates unchanged, in line with analysts’ expectations. However, investors were surprised by two officials who voted for a cut to revive the economic slowdown. Moreover, Governor Mark Carney admitted the central bank would consider a reduction if Brexit uncertainty doesn’t ease.

Economists expected the BoE’s Monetary Policy Committee to vote unanimously to keep the rates. The announcement of the 7 to 2 vote put pressure on the British pound. It declined to the lowest level in three weeks against the Aussie. Now the probability for a rate cut next year increased to 80%.

The UK’s central bank has not followed the US Fed and the European Central Bank in reducing rates. Though, yesterday it turned to a dovish stance.

Carney said that the bank would stick to gradual rate hikes only if the global economic slowdown stabilizes. And also if Prime Minister Boris Johnson’s deal manages to take the UK out of the European bloc. However, if this scenario goes wrong and the outlook deteriorates, Carney admitted a rate cut is close. He commented:

“These are pretty big tectonic forces operating right now. If global growth fails to stabilize or if Brexit uncertainties remain entrenched, monetary policy may need to reinforce the expected recovery in UK GDP growth.”

Reserve Bank of Australia Open to More Cuts

The British pound bounced back against its Australian counterpart after the Reserve Bank of Australia (RBA) released its latest statement with an updated outlook.

The central bank turned dovish on wage growth and said it was open to even lower interest rates. Australian workers should be ready for a period of zero income growth that will extend to the next election.

RBA downgraded a series of forecasts related to economic growth, consumption, wages, and housing investment. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.