News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
BoE Leaves Benchmark Rate Intact, Increases APT by £50 Billion

BoE Leaves Benchmark Rate Intact, Increases APT by £50 Billion

David Schutz,

THE TAKEAWAY: BoE stays in line with expectations -> quantitative easing could help growth but carries risk of inflation -> Cable basically unmoved as new measures are priced in

In a move expected by most, the Bank of England today decided to keep its benchmark interest rate at its current low of 0.5%. Additionally, the BoE increased its asset purchase target by £50 billion to £325 billion. The Pound was relatively unaffected in the immediate aftermath of the release, which had already been priced into the market.

Today’s steps are seen as a bid to increase economic growth in the UK, which has been beleaguered by the fallout from the debt crisis on the mainland. Although today’s industrial and manufacturing production numbers were solid, recent data has been overall less than encouraging and a number of key figures in the UK have warned that the nation is at high risk of recession and may have already entered this phase in Q1 2012.

BoE_Leaves_Benchmark_Rate_Intact_Increases_APT_by_50_Billion_body_BOE.png, BoE Leaves Benchmark Rate Intact, Increases APT by £50 Billion

Cable gave a somewhat counterintuitive jump after the release, possibly as market players realized the risk of further quantitative easing has been mitigated for the time being.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES