Wednesday, Oct 21, 2009

There's life in the old dog yet

BBC News: Pound soars on Bank meeting notes

The pound has rallied after the Bank of England said its monetary policy committee voted 9-0 earlier this month not to pump more cash into the economy.
The pound was up 1.8% against the dollar and up 1.1% against the euro, after the minutes of October's MPC meeting revealed the bank voted unanimously not to extend its £175bn programme of quantitative easing, and to keep interest rates on hold at 0.5%.

Posted by little professor @ 05:42 PM (1879 views)
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18 Comments

1. c'mon correction said...

It's surged on the oil price today, not because a bunch of dove's decided not to hose-pipe yet more money on the charred husk that is the UK economy!!

Wednesday, October 21, 2009 06:19PM Report Comment
 

2. shipbuilder said...

Wasn't the general consensus on here that more QE was inevitable, or did we maybe all get a bit hysterical?

Wednesday, October 21, 2009 06:37PM Report Comment
 

3. paul said...

Well hang on a minute.

It's achieved its primary objectives - to get house prices rising and get bankers back in the money. This decision is not to abandon QE, but just to give it a temporary hiatus.

When the double dip starts, watch the MPC roll out more QE quicker than you can say "central bank induced moral hazard".

Wednesday, October 21, 2009 06:49PM Report Comment
 

4. crunchy said...

3. paul

Exactly.

A leopard does not change its spots.

Wednesday, October 21, 2009 07:17PM Report Comment
 

5. yoyo1 said...

Hang on another mo, raise in rates ahead! "Mervyn King's warning over interest rates lifts pound".
http://www.thisislondon.co.uk/standard-business/article-23759264-mervyn-kings-warning-over-interest-rates-lifts-pound.do

Wednesday, October 21, 2009 07:22PM Report Comment
 

6. drewster said...

c'mon correction,

I wonder why the rising oil price boosts the pound. North sea oil is an irrelevance - we've been net importers for some years now.

Call me cynical, but does the rising oil price mean more Russian oligarchs and Saudi sheiks snapping up multi-million pound mansions in Mayfair?

Wednesday, October 21, 2009 07:26PM Report Comment
 

7. techieman said...

impressive move actually. I thought it would be going up but not that much and that quickly- well not against the US anyway! And it wasn't even oversold.

Oh well looks like the drawing board has to be revisited...... maybe.

Wednesday, October 21, 2009 07:28PM Report Comment
 

8. mountain goat said...

Dollar's kept falling after our close, Dollar Index been down to 74.95 !

Wednesday, October 21, 2009 07:34PM Report Comment
 

9. hpwatcher said...

''soars''

This word is so over used......pathetic

Wednesday, October 21, 2009 07:34PM Report Comment
 

10. shipbuilder said...

9. hpwatcher said...
"''soars''

This word is so over used......pathetic"

Lol. Add to that 'spiralling out of control'

Wednesday, October 21, 2009 07:41PM Report Comment
 

11. crunchy said...

The pound rises in a week of trading and everyone gets excited. lol

One needs only to look at a weekly chart. "Pound soars" Give me a break!

Wednesday, October 21, 2009 07:52PM Report Comment
 

12. letthemfall said...

Maybe it's a typo which should have said: Pound's sore after heavy fall. Or something like that

Wednesday, October 21, 2009 08:40PM Report Comment
 

13. bystander said...

Wasn't it openly stated by the MPC that they would revisit the QE question in the November meeting, so surely this 'decision' was a foregone conclusion? Wait till next month and then listen to all the 'analysts' open up the parity can of worms again.

Wednesday, October 21, 2009 09:05PM Report Comment
 

14. This comment has been removed as it was found to be in breach of our Blog Policies.

 

15. Double Dipper said...

I think Merv was trying to talk up interest rates today. It's an old trick from the BoE / politicians to reveal future plans as an alternative to actually carrying them out. Given that the markets are generally wise to this, I reckon it was directed at the housing market punters. After all, businesses are hardly borrowing recklessly ;-)

@6 - North sea oil is an irrelevance - we've been net importers for some years now.

We're still net importers, but we import less than most places, so an oil price rise will still help our currency relative to others.

Wednesday, October 21, 2009 10:06PM Report Comment
 

16. mander said...

For interest rates to stay low in order to save inflated wealth the pound must be stronger than this. Weak pound will mean higher prices next year and we all know that high interest rates will mean game over for house prices.

Wednesday, October 21, 2009 11:15PM Report Comment
 

17. crunchy said...

14. mander

Are you implying that our leaders can be competent when they want to be?

Thursday, October 22, 2009 12:10AM Report Comment
 

18. Agentimmo said...

It isn't "soaring". It needs to get back to the £/€ level of £1=1.25€ or above for it to "soar".
Hobbling along the bottom with a broken wing might be more apt at the moment....................

Thursday, October 22, 2009 10:21AM Report Comment
 

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