Corporate foreign exchange news

'No change' expected at MPC meeting

Thursday, 09 December 2010 09:06:27 GMT

Published by Jamie Jemmeson
Today's (December 9th) base rate decision from the Bank of England is likely to see current policy remain unchanged, analysts believe.
Both the 0.5 per cent interest rate and the £200 billion quantitative easing programme are expected to remain unchanged following the end of the Monetary Policy Committee meeting.
However, a three-way split in the vote may be recorded at this meeting, the Press Association reports. Such a vote split also came from last month's meeting. Individual voting patterns are published two weeks after the monthly rate announcement.
Forex dealers are likely to keep a keen eye on the decision, as short-term interest rates can affect currency valuation.
Budget cuts and strong inflation, as well as stimulus for continued growth all weigh on the decision.
Economic growth has been stronger than expected in recent months, but many analysts believe this will slow in the new year.
The 3.2 per cent rate of inflation has been a key factor in the decision not to add further stimulus, Bloomberg reports.
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