OctaFX | OctaFX Forex Broker
Open trading account

BoE on hold in November - ING

FXStreet (Łódź) - James Knightley from ING comments on BoE's decision today to leave policy unchanged in November, with the Bank Rate maintained at 0.5% and the size of the Asset Purchase Facility kept at £375B.

Key quotes

"This was widely expected given that yesterday’s PMI composite index has backed up other readings showing a slight slowing in the UK economy’s rate of growth."

"Meanwhile, with inflation running at just 1.2%, housing activity seemingly losing some momentum and wages still effectively flat lining, it is not really surprising that some of the Bank of England’s Monetary Policy Committee are sounding a little more dovish on rates."

"Worries regarding the Eurozone and financial market volatility also offer support to the view that rates shouldn’t be raised in the near-term."

"That said, the recent GDP revisions show that the economy has less spare capacity than originally thought and with the economy continuing to create jobs in significant numbers we suspect that wages will gradually respond, especially now that the national minimum wage has just been increased by 3%."

"We think that the economy is strong enough to justify action in 2Q15 after the April General Election. It may not be May, but we doubt that the BoE will wait until 4Q15 to hike as financial markets are currently pricing."

EUR/JPY consolidates below 144.00 ahead of Draghi’s speech

EUR/JPY steadied in a slim range over the last hours following a choppy Asian session, practically ignoring the European Central Bank decision to keep policy unchanged.
Read more Previous

Canada Building Permits (MoM) registered at 12.7% above expectations (6%) in September

Read more Next
Start livechat