Ahead of the Central Bank of England (BOE) policy meeting tonight, the pound sterling showed a lower fall during the opening of the European session by falling below the 1.36000 price level against the US dollar.
Following the worsening coronavirus crisis in Britain, the BOE is expected to act as a backbone to the Treasury in supporting the economy and enabling central banks to find excuses to implement negative rates.
UK Finance Minister Rishi Sunak will launch more fiscal stimulus in his budget which is scheduled to be published on March 3.
A large number of businesses in Britain are now haunted by a third economic shutdown since the outbreak hit last year, thus making a greater impact than other G7 countries.
The BOE is projected to maintain interest rates at 0.10% and withstand further increases in its bond buying program which has doubled to £ 895 billion.
However, at the same time the central bank will also issue feedback from commercial banks on possible negative rate operations, which according to Governor Andrew Bailey, it will change the functioning of the banking system if implemented.
In addition, the central bank is also expected to issue a monetary policy report and discuss current economic conditions as well as the prospects that have arisen following the smooth launch of vaccines in the UK.
