Dear Reader,

Today's overview of economic news and market action: 

• As expected, the BoE left the bank rate at 4.00% yesterday …
• Overall, there was a somewhat muted reaction on markets to the BoE decision …
• Elsewhere, there was a positive tone to risk appetite …
• On the currency front, sterling was on the defensive …
• This sees EUR/GBP open this morning above the 87p mark …
• GBP/USD is back near $1.35 …
• Elsewhere, EUR/USD is in the top half of $1.17-1.18 …
• USD/JPY is above the midpoint of ¥147-148 …
• Today’s macro calendar is relatively sparse …

All rates quoted are indicative market rates.

The September meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank maintain the Bank Rate at 4.00%. This was very much in line with market expectations. Once again, there was no unanimity within the MPC on its policy decision to hold rates steady.

The September meeting of Federal Reserve Open Market Committee (FOMC) saw the central bank cut interest rates for the first time since December of last year. The target range for the Fed funds rate was lowered to 4.00-4.25%.