Sterling was taken to Surprise!!!!!

The Bank of England has announced a surprise rise in the interest rates by a quarter of a point to 5.25%. This decision by the Bank of England has taken the Central Bank to a great surprise. Sterling powered to a six-a half year high yesterday after revealing the surprise. The Bank of England’s effective sterling trade-weighted exchange rate index rose to 105.20, its highest level since May’2000. The Sterling gained to a one-week high against the dollar by $1.9538. The pound rose to 0.8% to an 18-month high against the Euro to 0.6640 and 1.3% against the yen.

The Euro slipped against the dollar at 0.3% to $1.2895 because the European Central Bank left the Euro-zone unchanged at 3.5%. But the Japanese Yen continued to fall 0.7% against the dollar making it the lowest level since December’05 and lost 0.4% against the Euro. The depression trend in the Yen is because the Japanese economic data is very weak when compared with other countries economic data.

All in all, the surprise was very thrilling.