Pound Keeps Gains After BoE Boosts Asset Purchases

The Great Britain pound gained today and remained strong after the Bank of England kept its main interest rate unchanged and boosted the asset purchase program as the UK economy continued to weaken.

The BoE kept its key interest rate at 0.5 percent, but increased its program of asset purchases by £50 billion to a total of £325 billion. The Bank said in the statement after the monetary decision:

In the United Kingdom, the underlying pace of recovery slowed during 2011, with activity falling slightly during the final quarter.

The sterling should’ve fallen after the increase of stimulus and the dovish remarks, but proved to be surprisingly resilient.

GBP/USD climbed from 1.5815 to 1.5867 and GBP/JPY rose from 121.81 to 122.55 as of 14:25 GMT today.

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