Daily Alert – Thursday 18th June 2020: Bank of England – rate unchanged, QE increased

Mark Nugent Daily Alert, June 2020

Daily Alert – Thursday 18th June 2020: Bank of England – rate unchanged, QE increased

Today was Super Thursday for the Bank of England (BoE). Interest rates were kept at 0.1% with the expected 0-0-9 (up-down-no change) majority. QE was increase by GBP100 bln to GBP745 bln as expected with one dissenter (8-0-1 vs expectation of 9-0-0).

The BoE commentary said that the new QE funds would be spent by year-end (previously July). This was seen as being something of a “taper”, i.e. hawkish. The GBP surged for minutes before reversing to exactly where it was before the announcement. As is so often the case, the GBP started to rise before the announcement was made, almost as if some participants had prior access to the text.

The markets have been flat as a pancake since Monday’s risk-on moves.

That’s almost certainly it for the week from me. Have a good weekend when it comes and I’ll be back on Monday with your Trading Plan for Week 26.

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