Sterling jumps as in the BoE minutes noted, ” the Committee was clear that it did not wish to send any signal that it intended to set a negative Bank Rate at some point in the future”.
Though, on balance, “it would be appropriate to start the preparations to provide the capability to do so if necessary in the future,””
“The MPC therefore agreed to request that the PRA should engage with PRA-regulated firms to ensure they commence preparations in order to be ready to implement a negative Bank Rate at any point after six months,” the minutes added.
GBP/CHF resumes recent rise after BoE and hits as high as 1.2318 so far. Further rally is expected as long as 1.2232 minor support holds. Current rise is seen as resuming whole medium term rebound from 1.1102, as consolidation from 1.2259 has completed at 1.1583. Next target is 61.8% projection of 1.1102 to 1.2259 from 1.1683 at 1.2398. Firm break there would bring upside acceleration to 100% projection at 1.2840.
