Bank of England unanimous on QE for November, Pound goes up

23 November, 2011


This morning’s Bank of England minutes showed that all 9 committee members voted for ‘no extension’ to the existing Quantitative Easing (QE) programme in November.

Given uncertainty in the Eurozone and possible inflation risks, the committee voted to keep QE to £275bn. There had been speculation that after the surprise £75bn increase in October that the Bank was minded to increase this further, which could have spelt trouble for the Pound. Instead, it now looks like we will not see an extension until the current round of purchases is completed in February.

Sterling is up this morning, particularly against the beleaguered Euro. Other currencies are also looking relatively cheaper, for example sending South African Rand payments at the moment are at their best rate since mid-2009.

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