Bank of England Avoids Quantitative Easing, Pound Profits

The Bank of England refrained from easing the monetary policy at today’s meeting, causing the Great Britain pound to climb. The United Kingdom still suffers from the double-dip recession and it is questionable whether the currency could maintain its gains.
The BoE held its key interest rate at 0.5 percent and the asset purchase facility at £325 billion. The bank’s decision was likely caused by fears that excessive easing may lead to a surge of inflation. The BoE maintains its main rate unchanged since March 2009. The central bank also initiated the bond purchase program in March 2009 and expanded the program last time in February 2012.
GBP/USD climbed from 1.6126 to 1.6177 and GBP/JPY rose from 128.37 to 129.34 as of 14:09 GMT today.

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