Friday, October 29, 2010

GBP: There is a tendency that the BOE operates in the month when the report goes on inflation


As soon as the Fed's decision will come into force next week, investors pounder immediately begin to worry about meeting the Bank of England, which will be held on Thursday. While the GDP data this week, appear to have tempered expectations that the Bank will do without QE, there is a significant trend of the Bank of England to act in a few months out of the report on inflation (50% of all actions were in the same month) and this probably will keep the market in some exasperation. In a broader perspective, there is also the likelihood that the Bank may decide to cut interest rates from the current 0.50% and / or change the way the use of bank reserves as an incentive credit. Pound light only 1.60 by the end of the week, but he clearly is not enough lubrication to move higher until QE United States does not exceed expectations and will not send the dollar back down.

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