An interesting twist in an unfolding story apparently took place today after the release of the Bank of England’s (BOE) Monetary Policy Committee (MPC) minutes. Over the last year-and-a-half, the MPC has gradually seen a few votes shift in favor of lifting the nation’s interest rates. Today all votes turned unanimously in favor of holding rates at their current target.
Spencer Dale and Martin Weale, the two MPC members who have voiced opposition to the dovish views of the committee for the past year, capitulated in this month’s vote, citing sluggish growth in demand and a shaken international financial system as catalysts for their change of heart. The British pound (GBP), as a result, was seen trading significantly lower as market bears poured into other assets and went short on sterling.
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