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UPDATE: As expected, the Bank of England did not cut rates nor increase its quantitative easing program.While the BoE has been effective at affecting its own economy, markets will pay less attention to this announcement, as any cut or QE change would do little to affect the global economy.
The sterling has moved higher in relation to the dollar, but action in markets remains muted ahead of the a monetary policy from the European Central Bank at 7:45 AM ET.
ORIGINAL: The Bank of England will announce its latest monetary policy decision in just a few minutes at 7:00 AM ET.
Last month, it decided to increase its quantitative easing program by £50 billion ($78 billion). The central bank is expected to hold this asset purchase program at its current level of £375 billion this time around as the recovery in Great Britain falters.
More interesting would be another surprise from the People’s Bank of China, which has upstaged the BoE’s announcements for two months running by announcing rate cuts almost simultaneously.