Until then, the prospects for Cable look bearish given the dour economic scenario in the UK. According to a report from the UK’s Guardian indicated said that the Bank of England (BOE) may consider undertaking quantitative easing, in which they would buy long-term government bonds in order to force interest rates lower. This is similar to something that Federal Reserve Chairman Ben Bernanke suggested early last week. In other BOE-related news, BOE Monetary Policy Committee member David Blanchflower, who is by far the most dovish voter in the committee, will step down when his term ends in May 2009. This may have been market-moving news a year ago when the UK’s interest rate outlook was a bit mixed, but now that UK rates have already plunged to 2.00 percent and further cuts could be on the way in coming months, Mr. Blanchflower’s departure will do little to change the dovish bias within the MPC.
Related Article: British Pound Threatens Six Year Lows As UK Recession Paces Global Decline
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