Pound slides as BoE policymakers disagree over QE

<p>The pound has depreciated as disagreements over QE within the BoE MPC are revealed.</p>

In forex trading this morning (November 21st) the pound has lost ground against the euro and dollar as Bank of England (BoE) policymakers disagree over the impact their asset purchasing programme is having on the economy.

Minutes from the BoE's Monetary Policy Committee (MPC) meeting on November 7th and 8th have revealed that not all members are reading from the same hymn sheet when it comes to whether quantitative easing (QE) is boosting growth by encouraging borrowing among first-time buyers and businesses.

Furthermore, there are arguments for more monetary easing, even though the BoE decided not to pump more finances into the system at its last conference.

The minutes stated: "A case could be made for a further easing in monetary conditions. Different members placed different weights on those arguments."

At 10:55 GMT, the pound dropped by 0.1 per cent versus the dollar to £1 buying $1.591, while it gained 0.1 per cent against the euro to reach €1.244.

Find out about sterling and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.