Investing.com - Financial Markets Worldwide
Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

U.K. MPC Meeting Minutes Point Out To Further Reductions

Published 12/31/2000, 07:00 PM
Updated 12/17/2008, 05:00 AM

Release Explanation: It's a detailed record of the BOE MPC's most recent meeting, providing in-depth insights into the economic conditions that influenced their vote on where to set interest rates.

Trade Desk Thoughts: The BoE’s minutes from the meeting held at the beginning of December shows that the committee voted unanimously in favor for a 100 basis point rate cut, inline with the expected number. The bank’s view is that the risk of inflation has definitely shifted to the downside, while conditions in the international markets have deteriorated even further. The voting committee sees that the recent development in the U.K. economy has substantially deteriorated since the last meeting, reflecting a sharp monetary contraction. Despite the recent cuts, the bank does not expect to resolve the current problems in the financial markets, suggesting that further easing (rate cuts) may be necessary. In addition, the committee discussed the possibility of cutting more than 100 pips, but the implications for such a strong move were too big. 

Forex Technical Reaction: The cable fell 70 pips in the overnight session. Earlier, in late Asian trading, the pair tried to break above the 1.5700 area, but failed to do so. Against the euro, the pound reached a new all time low overnight.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.