Pound Pares Weakness as BOE Minutes Signal Less Push for Bond Purchases
The British pound pared its decline versus the euro and erased its drop versus the dollar as minutes from the Bank of England suggested fewer policy makers are considering calling for bond purchases.
Sterling was 0.3 percent weaker at 88.05 pence per euro as of 10:07 a.m. in London after sliding as much as 0.6 percent before the minutes were released. The pound was little changed at $1.6114 after falling as much as 0.3 percent.
Bank of England officials voted 7-2 to keep the benchmark interest rate on hold this month as a majority of policy makers said recent developments meant there was less need for a near- term tightening. There was a “range of views” among the majority of the MPC on the outlook for inflation, the minutes said.
In contrast to the June meeting, there was no mention of other policy makers favoring more bond purchases this month. In June, some officials said it was “possible” further asset purchases might become warranted.
To contact the editor responsible for this story: Keith Campbell at k.campbell@bloomberg.net
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