Morning Forex Fundamental: GBP

Morning Forex Fundamental: GBP

'The outlook for the U.K. economy is still uncertain' - Roger Bootle, founder of Capital Economics Ltd. and a former U.K. Treasury adviser

BoE refrained from more stimulus measures

Impact Medium

The Bank of England halted against pumping more money into the economy, hoping that bank's new lending scheme will bolster economy recovery. The bank already injected £375bn into the U.K. financial system, however, the outlook for the economy remains uncertain, even despite the fact nation’s gross domestic product grew 1% in the third quarter. At the same time, the BoE kept its benchmark interest rate a record low of 0.5%, which is held since March 2009.

'The outlook for the U.K. economy is still uncertain,' Roger Bootle, founder of Capital Economics Ltd. and a former U.K. Treasury adviser, said on Thursday. 'I suspect the fourth quarter is going to be weak, and if that’s the case, the discussion will come back to QE. I think we’re on course for more QE in the new year.'

'We are pretty sure that the economy will need more stimulus in the months ahead,' said Vicky Redwood of Capital Economics. 'And we do not think that the committee is out of firepower yet.'

The FTSE 100 Index turned lower 0.27 per cent to 5,776.05. The broader FTSE All-Share Index fell 0.30 per cent to 3,019.85.