The Pound has received a timely boost this lunchtime, after the Bank of England voted against additional quantitative easing this month and also left interest rates unchanged at a record low of 0.5%. The immediate reaction in the market has seen the Pound edge higher against the majors, as there was widespread speculation that the MPC could sanction additional stimulus measures to protect the UK economy from the emerging downside risks from the Euro-zone debt crisis.
Also, the UK economic outlook has worsened over the last quarter, with the revised estimate of GDP showing a deeper contraction in the first quarter. Recent data has shown the key sectors of the UK economy are weakening, particularly manufacturing, which contracted by much more-than-expected in the past month.
However, policy makers continued to adopt a wait-and-see approach and we will have to wait for the minutes to be released in a couple of weeks to see if any members joined David Miles in voted to extend bond purchases. If you would like a live dealing quote or to discuss risk management options, including the use of stop and limit order, please contact me by email or on my direct line listed below.
- Daily Foreign Exchange Rate Forecast – The Pound received a timely and welcome boost
- The Pound received a timely boost yesterday
- Foreign Currency Exchange Rate Forecast – The Pound received a timely boost
- Pound Sterling, the Euro and US Dollar exchange rate News Flash – The Pound received a timely boost this morning
- Foreign Exchange Daily Forecast – The Pound received a timely boost yesterday