The Pound (GBP) has made moderate gains against the Canadian Dollar (CAD) today, but remains at risk of losses on Thursday after a Bank of England (BoE) meeting.

BoE policymakers will be making their monthly interest rate decision and in a sharp turnaround of forecasts, officials aren’t expected to raise interest rates this month.

There had been speculation as recently as April that a rate hike was likely in May, but the latest UK economic data has put a dampener on predictions.

Sajiv Vaid of Fidelity MoneyBuilder Income Fund has warned that there could be volatility whatever the BoE’s decision. Considering the outcomes, Mr Vaid has said;

‘Having raised expectations [for a May interest rate hike], the BoE now find themselves in an unenviable dilemma of “damned if they do and damned if they don’t…”, a horrible predicament for any central bank to find themselves in’.

Pound traders may react positively to higher interest rates, but economists might question the viability of this action given apparent UK economic fragility.

how much is a pound in money is 1.7334 in GBPCAD