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August 2016

Bank of England’s QE operation falls short

Published: Wednesday 10 August 2016

The Bank of England issued a brief statement this morning following yesterday's disappointing bond buying operation.

The BoE will incorporate the £52m shortfall from yesterday's uncovered operation within the next tranche of the current 6-mth purchase programme. Yesterday's shortfall sent 10-yr gilt yields to a record low.  Details of these purchases will be announced on 3rd November and the lack of take-up will be of concern to the BoE and is not exactly a vote of confidence for the pound.

Meanwhile the USD has come under continued pressure today as the market grows more sceptical (despite last week’s strong employment data) of a US interest rate rise in 2016.
Later today the RBNZ is expected to cut their interest rate by 0.25% to 2.00%. 

Latest FX news by Chris Verdet