Bank of England - Bank of England governor Mervyn King said yesterday that interest rates sooner or later be returned to a normal level, called the British early in preparation for the hike, the market reacted enthusiastically, the pound against the dollar hit a one-month high against the euro also reached four-week highs.
Mervyn King, published in the 21 Scottish Herald wrote that "I do not know the interest rate so low much longer, but some time in the future will return to normal levels, in formulating your financial plan will be This is taken into account is a wise move. "
The Bank of England announced yesterday October 8 interest-rate meeting minutes showed the Bank of England by 9 votes to 0 votes unanimously to maintain the 0.5% interest rate unchanged, while maintaining the 175 billion U.S. dollars in assets to buy remains unchanged.
The market reacted strongly to central bank governor's remarks, the pound against the dollar after earlier hitting a new high of more than one month, the pound against the euro also hit a four-week high of 0.9040. As at Beijing at 18:50 on the 21st, the pound against the U.S. dollar reported 1.6570, the pound against the euro reported 0.90102.
Standard Chartered Bank in London, G-10, chief currency analyst Steve Barrow said the Bank of England rate hike off the market's expectations, the market has become the currency even more fanatical. Japan's Mizuho Financial Group, a London-based head of European hedge fund Nierqiongsi in an e-mail said, "Gold (UK central bank) and the British pound is being changed."
However, some analysts pointed out that the Bank of England governor hinted that interest rates reflect the underlying pace of economic recovery in the United Kingdom more optimistic than expected, which is released yesterday the bank's interest-rate has been reflected in the minutes.
Mervyn King said the Bank of England interest rate has been reduced to a record low of 0.5% and by 175 billion pounds of quantitative easing plans to inject more cash economy in order to ensure there is sufficient to stimulate the economy. There are indications that these extraordinary measures are beginning to show results, including data released later this week will show the British economy out of recession in the third quarter.
Bloomberg News survey, after five straight quarters of economic recession, the British economy in the third quarter of this year, there may be a breakthrough. National Economic and Social Research (NIESR) also pointed out Wednesday, the United Kingdom in the fourth quarter GDP growth may reach 0.7%. |
Article Details
