BoE vote to keep rates unchanged, ready to increase QE
Minutes from the September 7-8 Monetary Policy Committee meeting of the Bank of England showed policy makers voted unanimously to keep interest rates unchanged at 0.50 percent. All 9 members voted to keep rates unchanged as expected.
The minutes also showed that the MPC voted 8-1 to keep the current Asset Purchases target at £200 billion, with Adam Posen to only member to vote for an additional £50 billion increase in quantitative easing. Despite the vote, the minutes evidenced how the central bank stands prepared to increase stimulus eventually, with most members saying it was increasingly likely that more QE will be warranted at some point. The minutes flagged the increasing probability that policymakers in the UK will increase their current asset purchases target as early as October.
GBP/USD fell to a fresh 8-month low following the BoE minutes. EUR/GBP jumped higher to 0.8749 also after the minutes.
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