BoE Meeting Minutes showed deflation fears
Bank of England policymakers see a risk that sterling could strengthen further and leave inflation below target for longer, minutes from their March meeting showed on Wednesday. The minutes of the BoE Monetary Policy Committee's March 4-5 meeting showed all nine members thought the very weak short-term outlook for inflation warranted keeping interest rates on hold at a record low 0.5 percent.
"This had the potential to prolong the period for which CPI inflation would remain below the target and exacerbate the risk that lower expectations of inflation might become more persistent," the minutes said. All MPC members agreed it was more likely than not BoE interest rates would rise over the next three years.
Due to this and job figures Sterling sharply fell and is currently being traded few points above 1.4660 level. Pair is likely to find support around 1.46 and resistance above 1.4750 area. Later today, in the US session, FOMC interest rate decision and the following statement are scheduled for a release.
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