Pounds jump up a cent against the dollar as Carney unites the Bank of England against further QE
None of the Monetary Policy Committee (MPC) wanted more quantitative easing at the last meeting, the Bank of England's minutes reveal. Of the nine MPC members zero voted for increased asset purchases. The pound has spiked up against the dollar on the news.
Gilt yields have spiked up following the MPC minutes this morning pic.twitter.com/vtDWn2n1Pj
— Ed Conway (@EdConwaySky) July 17, 2013
Under the stewardship of former governor Sir Mervyn King, we'd been used to seeing three votes for further purchases (they're currently at £375bn).
Now under Canadian Mark Carney, the new governor has voted against, and seemingly convinced the other two dovish members (Fisher and Miles) to change their minds as well.
From the minutes:
Taken in isolation, this increase in interest rates represented an unwelcome tightening in monetary conditions that, were it to persist, would risk hampering the emerging recovery