Should the outlook in November remain “broadly consistent” with last month, when the BOE announced a new stimulus package, “a majority of members expected to support a further cut in bank rate to its effective lower bound” later this year. The committee sees that lower limit at close to, but just above, zero. The minutes of the latest meeting show some officials remain unhappy with the policy loosening. Kristin Forbes and Ian McCafferty, who voted against some of the measures in August, said the current outlook still didn’t fully warrant the new government-bond purchases. However, they didn’t vote against continuing the operation for now, given the “potential costs to the economy of immediately reversing the program.”
Sterling is currently being traded around 1.32 handle. Pair is likely to find support around 1.3140 level and resistance above 1.3250 area.
