Pound Falls as Minutes Signal About More Stimulus

The Great Britain pound dropped today as the minutes of the Bank of England monetary policy meeting showed that most of the policy makers voted to keep lending rates unchanged and suggested that further easing may be possible.

Seven of the Monetary Policy Committee members voted to keep the rates stable, while only two voted for an increase. On the previous meeting three members voted for higher interest rates. The minutes said that “the current weakness of demand growth was likely to persist for longer than previously thought” and “further asset purchases might become warranted”.

GBP/USD sank from 1.6241 to 1.6109 as of 12:21 GMT today, following the advance to 1.6262. GBP/JPY dropped from 130.25 to 128.99.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *