The Bank of England’s decision to expand the asset purchase program by £50 bn was supported by 7 out of 9 MPC members.
The latest changes in the central banks’ monetary policy were conditioned by the necessity to resist the consequences of the escalating eurozone crisis. Those 2 MPC members who voted against the expansion say such measures are to premature.
The latest MPC meeting also resulted in a program aimed at improving the lending conditions for the real sector of the British economy. The MPC expects the measures to stimulate the economic recovery in the UK.
At the same time, the MPC members decided to leave the interest rates unchanged. However, further interest rate cuts are possible in the near future. At this point, the MPC wants to look at the results of the previous steps prior to proceeding to further cuts.
Forex.
According to , the British Pound is showing strength against the US Dollar. GBPUSD is forming wave A(C )/C inside a bigger-scale upswing, represented by wave A/B of level Daily or higher.
The closest major levels of resistance are located at 1.5707 and 1.5731/43. The rally of the british pound will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below the MF pivot 1.5636 (ash shown below):
