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Central Bank Outlook: BoE More Divided
- The Minutes to the 3-4 October BoE MPC meeting showed the committee once again to be unanimous over its decision to keep the asset purchase program target unchanged at £ 375 bln. Moreover, the Committee was also unanimous in its decision to keep the benchmark interest rate at a record low of 0.5%.
- However, a clearer division was evident over the effectiveness of additional future asset purchases once the current plan is completed next month.
- With the recent data having a more optimistic tone, it is not surprising that the Minutes failed to repeat the claim in September that some members felt further policy stimulus was more likely than not.
- DE View: With three of nine MPC members wary of future asset purchases and stronger data, this argues against the BoE next month adding further to the asset purchase program.