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BoE Pats its Own Back
- Surprisingly none, the BoE kept policy on hold this time around, thereby consolidating the array of stimulus measures put in place in early-August. The vote this time was unanimous in regard to all aspects of policy although circumspection about some of bond purchases was again signaled by MPC members McCafferty, and particularly, Forbes.
- The MPC stressed that they has expected the very clear bounce-back in surveys of business and consumer sentiment seen in the last month. Even so, since the August meeting, the BoE accepted that a number of indicators of near-term economic activity have been somewhat stronger than expected.
- Clearly and understandably, the MPC retains a qualified easing bias, albeit with existing splits on the MPC suggesting any further cut in rates (likely to be no more than 15 bp) to be resisted by 2-3 members; NB zero rates, let alone negative ones, are still being ruled out!