As the 5 year anniversary of the Bank of England cutting interest rates to 0.5%, the bank has announced to leave the base rate and asset purchases unchanged. The current level of asset purchases (QE) remains at £375bn.
The 5 year anniversary is a significant length of time for interest rates to be held at the record low of 0.50%. The ultra-loose monetary policy has been highlighted as a risk to the economy by some analysts. Mark Carney’s policy of Forward Guidance headline unemployment thresholds have nearly been met, alongside what some commentators believe to be a housing market bubble.
The full Bank of England release.
In the FX markets prior to the announcement GBPUSD had been trading in a relatively tight range between 1.67 and 16730. Initially following the release the pair were mainly unchanged, with a slight bid higher reaching 1.6751.