Sterling unmoving versus dollar as BoE keeps QE plans the same
City Index November 8, 2012 9:15 PM
<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.
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