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EUR/GBP slumps as BoE MPC split on interest rates

FXStreet (Córdoba) - The EUR/GBP slumped to a fresh 1-week low following the release of Bank of England’s latest minutes, which showed 2 members of the Monetary Policy Committee (MPC) voted to hike interest rates this month.

Despite recent dovish comments from Governor Carney, it seems some members of the MPC are ready to begin a hiking cycle. The pound rose across the board and dragged the EUR/GBP to a 1-week low of 0.7969 in recent dealings.

The EUR/GBP managed to bounce slightly from lows and it is currently trading at 0.7985, still 0.37% below its opening price.

Two MPC members helped GBP/USD to come to life

GBP/USD rebounded from 1.66 support reaching 1.6629 before the MPC minutes release, and continued the move higher right after.
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BoE Minutes: MPC voted 2-7 to hike rates

BoE Minutes from the MPC monetary policy meeting held on 6 and 7 August and released today reveal that the Committee voted 7-2 in favor of maintaining the interest rate at the record low of 0.5% and unanimously opted for keeping the program of asset purchases steady at £375 billion. This outcome is against the general expectation of an unanimous vote for staying on hold.
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