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Currency Analyst since 2010

GBP/USD rose on the Bank of England

The Bank of England has decided to leave monetary policy unchanged. According to its meeting minutes, the members of the Monetary Policy Committee (MPC) in line with expectations voted by a majority of 8-1 to maintain Bank Rate at 0.5%. As a month ago, Ian McCafferty votes to increase the benchmark rate by 25 bps. All MPC members agreed to maintain the stock of purchased assets financed by the issuance of central bank reserves at 375 billion pounds.

The central bank noted that Britain enjoys “solid domestic expansion”. The MPC acknowledged risks coming from China and other emerging economies, though pointed out that global developments are not yet sufficient to alter materially the central outlook described in August Inflation Report. The Bank of England added that inflation increase around the year-end is still likely.

Overall, British central was not as dovish and negative as expected. GBP/USD rose to 1.5450. 

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