Sterling unmoving versus dollar as BoE keeps QE plans the same

<p>Sterling has remained unchanged versus the dollar following news the Bank of England will not be upping its stimulus programme.</p>

The pound was robust in forex trading against the dollar today (November 8th) after the Bank of England's (BoE) Monetary Policy Committee (MPC) announced it will not be increasing its quantitative easing (QE) programme.

At present, £375 billion has been pumped into the UK economy by means of asset purchases.

The last time the MPC opted to increase its QE programme was in July of this year, when the committee chose to raise the QE bar by £50 billion, while some expect a similar decision to be made in the near future.

MPC decision-makers may hope this will not be necessary, however, as they wait for the effects of the Funding for Lending Scheme – which provides cheap money for banks in a bid to boost lending – to trickle down to small firms and first-time buyers.

The MPC also opted to maintain interest rates at 0.5 per cent – which is the historic low that has been maintained since March 2009.

At 13:45 GMT, the pound was firm against the dollar, with £1 buying $1.597.

Find out about the pound 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.