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Bank of England cuts bank rate threshold to reduce stock of purchased assets

Published 06/21/2018, 07:34 AM
Updated 06/21/2018, 07:34 AM
© Reuters.  Bank of England cuts bank rate threshold to reduce stock of purchased assets
  • Bank of England's Monetary Policy Committee now says it won't reduce the stock of purchased assets--i.e., corporate bond and UK government bonds purchased--until the bank rate reaches about 1.5%, that's a lower threshold than its previous guidance of about 2%.
  • GBP/USD +0.23% to 1.3206.
  • Any reduction in the stock of purchased assets will be conducted at "a gradual and predictable pace."
  • If any potential changes in the bank rate aren't sufficient to achieve the inflation target, the reduction in the stock of assets could be amended or reversed.
  • ETFs: FXB, GBB, DGBP, UGBP
  • Now read: FX Market Analysis - 19 June 2018


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