The BoE kept its bond stimulus plan unchanged at 200 billion pounds ($318 billion), and left its borrowing costs at the record low of 0.50 percent. The decision by the MPC to keep its key policy rate unchanged marks the 17th straight month that rates were untouched. Looking ahead, inflation may ease in the coming months of 2010; however, members of the central bank recently noted that the increase in the value added tax measures which will take place at the beginning of 2011 will likely put upward pressure on consumer prices. Nonetheless, in addition to the BoE minutes on August 18th, traders should not overlook the inflation and output projects on August 11th.
Written by Michael Wright, Currency Analyst To Receive Future Articles by Email, Please contact me at mwright@fxcm.com Michael Wright is the author of FX Headlines, Fundamentals vs. Technical's, Weekly Spotlight, and Forex Trading Weekly Forecast
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