Bank of England

September 5, 2013

The Monetary Policy Committee left its policy settings unchanged and released a statement that revealed nothing about the two-day meeting’s discussion or voting pattern.  Minutes will be released on September 18.  British PMI surveys in August were exceptionally strong, reinforcing speculation that the central bank will start to raise its 0.5% Bank Rate sooner than its forward guidance suggests.  No effort was made to dissuade such thinking in today’s statement, and that omission augmented rate increase speculation, but in truth the August statement had also just mentioned the last time when policy settings were changed and the date of upcoming inflation reports and minutes.  The asset purchase plan remains at GBP 375 billion.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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