UK pound is down pretty much across the board today, thanks in large part to the release of the minutes from the latest Bank of England meeting. It looks as though loose monetary policy is going to continue for a little while longer, and that is keeping the sterling down against its major counterparts.
The minutes to the latest Bank of England Monetary Policy Committee meeting, held earlier this month, were released earlier today. The minutes showed that all of the MPC members voted to keep a loose monetary policy. This means that the quantitative easing program will remain in place at 375 billion pounds per month, and the record-low interest rate will remain in place for a while.
BOE’s latest meeting indicates that all members are in agreement, without dissenters asking to tighten monetary policy. So, even though some hawks have had higher rates and tighter policy priced in for months, it appears that it will be some time before any of it comes to fruition. The result of that decision to keep monetary policy weak is a lower pound today.
At 13:22 GMT GBP/USD is down to 1.7028 from the open at 1.7064. EUR/GBP is higher, moving up to 0.7907 form the open at 0.7891. GBP/JPY is down to 172.6615 form the open at 173.1450.
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