GBP/INR Bounces Back Ahead of BoE Meeting

GBP/INR bounces back on Thursday, after several days of a sharp decline. At the time of writing, the pair is trading at 93.186, up 0.39% as of 6:45 AM UTC. The greatest part of the gain came in the last few minutes.

The pound has been weakening these days on fresh worries about a potential no-deal Brexit, as UK Prime Minister Boris Johnson intends to rule out any attempt to extend the deadline of the exit transition. Currently, the deadline is set for December 31, 2020.

The British currency recently hit a strong support level at 92.6800 and bounced back on economist expectations that the Bank of England (BoE) will leave the interest rate unchanged at its meeting later today. The central bank will likely raise the economic outlook after Johnson’s Conservative Party secured a historic win in the election, allowing it to form a majority government.

All 69 economists surveyed by Reuters expect the BoE to maintain the rate at 0.75%. Most of them said that BoE’s Monetary Policy Committee (MPC) would repeat the previous vote of 7-2 in favor of a steady rate. Last month, two MPC members voted for a rate cut, citing the weakening labor market.

Investors will watch the BoE’s meeting minutes to understand the central bank’s plans for 2020. As of today, all possible scenarios are possible.

ING economist James Smith commented:

“It’s pretty murky. Things could be very uncertain in the second half of 2020.”

Allan Monks, an economist at JP Morgan, said that much depends on Brexit:

As plenty of Brexit uncertainty still surrounds the 2020 outlook, we think the BoE is likely to retain its dovish bias into next year. Even if it holds rates, as we currently expect, the government’s intention to legislate against a transition extension serves to highlight the risk of a cliff edge in 2021.”

Another important question is who will succeed BoE Governor Mark Carney after his departure on January 31, 2020, which happens to be the date when the UK will most likely officially exit the European bloc. 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.