The Bank of England released the minutes of this month’s policy meeting, showing that policy makers voted unanimously for keeping policy the same. The Great Britain pound fell nevertheless as traders were concerned by news from China.
BoE released minutes of its October 8–9 meeting today. The minutes were rather hawkish, saying:
The news on the month had continued to suggest a robust recovery in activity in the United Kingdom. Monetary stimulus remained considerable and confidence appeared to be rising.
As a result, additional stimulus was unnecessary:
All members therefore agreed that there was currently little case for increasing the degree of monetary stimulus further.
The recent data added to signs of economic recovery. Of course, it is too early to consider dropping stimulus altogether. And indeed, the minutes revealed that “no MPC member thought it appropriate to tighten the stance of monetary policy at the current juncture”.
GBP/USD dropped from 1.6233 to 1.6129 and GBP/JPY went down from 159.29 to 156.96 as of 10:58 GMT today. EUR/GBP advanced from 0.8487 to 0.8522.
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