So what will happen tomorrow? The money markets seem to be expecting the BoE to increase ointerst rates from 0.25% to 0.5%. If so that that can be expected to consolidate the stronger £. But suppose it doesn't. The Monetary Committee has been very cautious up to now and the last vote was 7/2 in favour of leaving the rate the same. Quite a few people will have to change their minds this time. If they don't and the rate stays the same we might expect the £ to fall below 5 again.
The ball is rolling ... place your bets now please, Ladies and Gentleman.
