The pound has just moved higher following the latest Bank of England interest rate setting meeting.

As expected, the central bank kept interest rates on hold at 0.1% and left their quantitative easing programme unchanged. In the minutes that accompanied the decision, however, the BoE sounded relatively optimistic about the economic outlook, projecting a quick recovery to pre-covid levels by the end of the year and for inflation to pick up towards their 2% target levels over the coming months. They also hinted that they are not in any major rush to look at negative rates.

As a result, the GBP/EUR has jumped nearly 1-cent today and hit a fresh high from May 2020. GBP/USD has made back some ground and continue to trade relatively high.