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GBP: Continues to loose altitude in the aftermath of BoE - Investec

FXStreet (Delhi) – Research Team at Investec, notes that as widely expected, the MPC maintained the existing stance of monetary policy, leaving the Bank rate on hold at 0.5% and the stock of asset purchases (QE) at £375bn.

Key Quotes

“The minutes of the meeting, which under the new policy arrangements are now released concurrently with the announcement, showed that the vote on rates was 8-1 for the fifth successive month, with Ian McCafferty once again backing a 25bp rate increase.”

“The decision on QE was taken unanimously. The mildly dovish tone of the minutes led to Sterling giving up some ground against the Euro and Dollar after briefly rallying to 1.3850 and 1.5200 preannouncement.”

“The committee noted that the Chinese led financial market volatility had largely subsided since the late-summer. However it pointed out that there had been a further decline in oil prices implying that the path of CPI inflation next spring would be slightly lower than in last month’s Inflation Report.”

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