Pound slips versus euro as BoE keeps stimulus the same

<p>The pound has slipped versus the euro as the Bank of England keeps stimulus levels the same.</p>

The pound has slipped versus the euro in forex trading this afternoon (October 4th) following news the Bank of England (BoE) Monetary Policy Committee (MPC) has opted not to embark on any further fiscal stimulus.

It has maintained interest rates at their historic 0.5 per cent low and will not be raising the amount of quantitative easing from its current level of £375 billion.

The last time the BoE upped its asset purchases was in July, when the MPC elected to raise the programme by £50 billion to boost growth.

Under quantitative easing, the central bank creates money and uses it to buy government bonds to drive stimulus by encouraging banks to lend money.

Some analysts expect the bond-buying programme to be increased again before the end of the year.

At 15:55 BST, the pound was higher by 0.3 per cent in trading with the dollar, with £1 buying $1.613, but it lost ground against the euro, sliding by 0.2 per cent to £1 for every €1.242.

Find out about the euro and forex trading at City Index.

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