The BoE’s MPC unanimously decided to expand the QE program (asset purchases) from £200B up to £275B in order to stimulate the British economy.
Wednesday’s MPC Meeting Minutes say that in 2012 the rate of inflation may rapidly decline. According to the official data, in September 2011 the annual rate of inflation was equal to 5.2%. Despite that the Bank of England assumes that the rate of inflation will probably not exceed the limit of 2% within the next 2 years.
The current policy is fairly flexible. It can be adjusted with a glance at the situation in the eurozone and financial markets.
FOREX.
According to the Department of Masterforex-V trading System, GBPUSD has recently finished a long-term upswing and is retracing against it (wave A/B). If there is an upward FZR after breaking above the 1.5846 high, the price will initiate wave А(С) or С. In order to start a rally GBPUSD will have to overcome the resistance at 1.5851. Once there is a break below the 1.5691 low, followed by a downward FZR, the mentioned wave A/B will be continued. The MF pivot 1.5542 will become the closest support.
