Bank of England Minutes

The Pound has weakened this morning following the release of minutes from September’s Monetary Policy Committee (MPC) meeting.

All nine members of the MPC voted to keep interest rates on hold at 0.5% as widely expected. Adam Posen was the only member to continue to call for a further expansion of the Bank’s Quantitative Easing (QE) programme, voting for a further £50bn of stimulus.

Whilst only one member voted for further QE, the minutes indicated that for many of the MPC members the decision to hold QE at its current level of £200bn was finely balanced and that the case for further QE had strengthened.

As discussed in previous blogs the threat of further QE poses a significant threat to the Pounds value.

The Pound is down against the US Dollar trading at 1.56 and down against the Euro trading at 1.14.

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