GBPUSD: British Pound Strengthens as BoE Abstains From QE
During the latest MPC meeting, the Bank of England’s committee
decided to abstain from easing the money-and-credit policy in the short
run.
At the same time, the MPC members don’t deny the possibility of the
UK economy falling into recession in Q1 2012. Amid the poor GDP stats
for Q1 2011, the next UK GDP report, which is scheduled for April 25th, will
confirm the start of a technical recession as long as the GDP declines
in Q1 2012. The MPC members assume that the rate of inflation will slow
down, but not as fast as expected.
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