MetaTrader 4
Vertex FX 10

Bank of England Leaves Rates and QE Unchanged

As expected the MPC have left interest rates on hold at 0.50% and quantitative easing at £375bn.

Carney is now under pressure following the recent better than expected data points from the UK, pointing to a recovery that it is gaining traction.  The Governors Forward Guidance, of ultra-loose monetary policy seems to be being ignored by the markets, as traders believe that the bank will be forced to raise rates earlier than forecast.

The minutes of the meeting will be published on Wednesday the 18th September at 9:30am, which will be closely watched for any dissenters. In normal circumstances (without forward guidance) concurrent months of growth and forward indicators beating expectations would see some members of the MPC vote to raise rates.

In the FX markets Sterling trades session highs against the greenback at 1.56600.

GBPUSD BoE Announcement

The full publication from the Bank of England can be found here.

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