The Great Britain pound jumped today after the Bank of England monetary policy meeting minutes were released, showing that the central bank’s policy makers voted unanimously for the quantitative easing.
The members of the central bank’s Monetary Policy Committee voted unanimously to boost asset purchase by £75 billion to £275 billion. The policy makers also vote to keep the target interest rate unchanged at 0.5 percent. The minutes said:
While the stimulatory monetary stance and present level of sterling should help to support demand, the weaker outlook for, and the increased downside risks to, output growth meant that the margin of slack in the economy would probably be greater and more persistent than previously thought. This made it more likely that inflation would undershoot the 2% target in the medium term, without further monetary stimulus.
GBP/USD jumped from 1.5711 to 1.5796 as of 12:19 GMT today. EUR/GBP erased its previous gain to 0.8786 and traded near the opening level of 0.8751 today.
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