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17 Jul 2013
BoE Minutes: MPC voted 9-0 to keep QE steady
FXstreet.com (Barcelona) - BoE Minutes from the MPC monetary policy meeting held on 3 and 4 July and released today reveal that the Committee voted unanimously in favor of maintaining the interest rate at 0.5% and quantitative easing unchanged.
Paul Fisher and David Miles, who at recent meetings voted in favor of increasing the asset purchase program by another £25 billion to £400 billion, decided to change their stance. Nevertheless, the minutes indicated that some members still believed further stimulus was warranted “but the Committee would be investigating other options during the month, and it was therefore sensible not to initiate an expansion at this meeting.”
ING analyst James Knightley does not believe more QE will be introduced “with forward guidance now seeming set to be the main policy tool to try and secure the conditions necessary for ongoing recovery.” He adds that “the economy is gaining some momentum and assuming the external backdrop remains supportive we see the potential for an interest rate rise late 2014/early 2015 rather than the 2016 date the BoE is trying to signal.”
Paul Fisher and David Miles, who at recent meetings voted in favor of increasing the asset purchase program by another £25 billion to £400 billion, decided to change their stance. Nevertheless, the minutes indicated that some members still believed further stimulus was warranted “but the Committee would be investigating other options during the month, and it was therefore sensible not to initiate an expansion at this meeting.”
ING analyst James Knightley does not believe more QE will be introduced “with forward guidance now seeming set to be the main policy tool to try and secure the conditions necessary for ongoing recovery.” He adds that “the economy is gaining some momentum and assuming the external backdrop remains supportive we see the potential for an interest rate rise late 2014/early 2015 rather than the 2016 date the BoE is trying to signal.”