The Pound Just Plunged After BoE Chief Mervyn King Says Quantitative Easing May Come Back

Yet more evidence that on the other side of the Atlantic, central bankers are more likely to loosen than tighten.

Speaking today, BoE chief Mervyn King warned that quantitative easing (basically using the central bank to buy assets and effectively pushing interest rates sub-zero) could come back, despite the program having officially ended.

Just look what his comments did to the pound.

Meanwhile, this sets the stage for what could be an interesting day in our fixed-income markets, which will deal with both Bernanke and a Treasury auction.

Pound

Photo: FinViz

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