Friday, April 20, 2012

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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