Forex Dictionary

Official Bank Rate

Official Bank Rate

Measures Interest rate at which banks lend balances held at the BOE to other banks; Usual Effect Actual > Forecast = Good for currency; Frequency Monthly; FF Notes When there is a change in rates the MPC will also issue a statement. Rate shifts are usually priced in the market and thus overshadowed by the MPC statement which is focused on the future; Acronyms Bank of England (BOE), Monetary Policy Committee (MPC); Also Called Interest Rates, BOE Rate; Why Traders Care Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future; Derived Via The 9 members of the MPC vote on where to set the rate. The individual votes are published 2 weeks later in the MPC Meeting Minutes;