Wednesday, Sep 23, 2009
MPC Minutes: QE Pause (100%); no discussion on deposit rate reduction
Reuters: Sterling up, Sterling up, BoE minutes show unanimous QE pause
Sterling rallied on Wednesday after Bank of England minutes showed no policymakers voted to increase its asset buying plan and that cutting the interest paid on bank reserve deposits was not discussed.
BoE Monetary Policy Committee members voted unanimously to keep the asset purchase programme at 175 billion pounds in September and to keep interest rates at a record low 0.5 percent, the minutes showed.
They gave no indication the MPC had considered cutting the remuneration rate on commercial banks' deposits with the BoE -- an issue aired by Governor Mervyn King last week in testimony that markets took as offering a grim view on the UK economy.
Posted by 51ck-6-51x @ 05:07 PM (1188 views) Add Comment
10 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. 51ck-6-51x said...
[ Not sure how I got the chant into the title there. It does only say "Sterling up" once. ]
2. titaniccaptain said...
What happens to the lender's position to lend when QE is wrapped up?......relevance to the house price crash? EFIN HIGH......
3. 51ck-6-51x said...
TC
- Risk and reward are related? Well I never.
4. paul said...
A touch of town crier there, 666.
"Oh hear ye this, or hear ye this. On this the 23rd day of September, ... "
5. 51ck-6-51x said...
Paul
- I don't like the acronym much but you made me LOL :)
6. titaniccaptain said...
@666
Well if the banks return to the guilt (Spelling intentional) market its like a revolving door....does that mean that their liquidity was only short term?
@Paul
Funny you should say that....I cut short of saying the word September today.
http://www.economicvoice.com/speakers-post.php?post=318
7. hpwatcher said...
The next thing we will be hearing about now is inflation. Expect sky high interest rates and cuts....and a change of government.
8. dgj said...
yeah sterling up such a small amount to put into in the green today....
9. jack c said...
hpwatcher - good piece in this weeks investment week from Bryn Jones of Rathbones (its not available yet on line) but the point he makes is that inflationary pressures pose a greater risk than is currently being flagged - Bank of Israel hiked in face of 4% inflation at end of August and whilst its not the hot bed of central banking policy it was one of the first to cut when the credit crisis struck. The Bank of Korea is another to watch as it is worried about its housing market - so there is substance in your statement
10. robh said...
It gives me a warm glow thinking of strikes and 15% interest rates and an Tory government slashing everything... and probably a fuel crisis...
My youth relived
As long as we don't get punk again... I don't think the blubber children these days have the energy... they seem to have the spite though... some kind of wii punk perhaps
What do contributors think of wii 'conkers'? I thought of it today