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18 Sep 2013
BoE Minutes: MPC voted unanimously in favor of keeping QE and bank rate unchanged
FXstreet.com (Barcelona) - BoE Minutes from the MPC monetary policy meeting held on 3 and 4 September and released today reveal that the Committee voted unanimously in favor of maintaining the interest rate at 0.5% as well as in favor of keeping the program of asset purchases totaling £375 billion unchanged.
According to the Minutes, there was some discussion among the MPC members on the need for further loosening of the monetary stance, “based in part on their judgements about the speed with which the degree of slack in the economy might be reduced if the momentum in demand continued to grow.” The Committee agreed however that currently there was no need for additional stimulus.
The Minutes also referred to the BoE's new forward guidance, explaining once again that reaching the appointed 7% unemployment threshold would not automatically trigger changes to the bank rate.
The MPC noted that the UK recovery was proceeding steadily, in line with expectations, and that the Eurozone economy was improving more strongly than projected. The appreciation of the pond increases the possibility of inflation in the UK dropping below 2.5% in 18 to 24 months.
According to the Minutes, there was some discussion among the MPC members on the need for further loosening of the monetary stance, “based in part on their judgements about the speed with which the degree of slack in the economy might be reduced if the momentum in demand continued to grow.” The Committee agreed however that currently there was no need for additional stimulus.
The Minutes also referred to the BoE's new forward guidance, explaining once again that reaching the appointed 7% unemployment threshold would not automatically trigger changes to the bank rate.
The MPC noted that the UK recovery was proceeding steadily, in line with expectations, and that the Eurozone economy was improving more strongly than projected. The appreciation of the pond increases the possibility of inflation in the UK dropping below 2.5% in 18 to 24 months.