BoE: last meeting under M.King
GBP/USD has renewed a monthly high at $1.5445 amid speculation the Bank of England Governor Mervyn King will conclude his last policy meeting today without adding to monetary stimulus. According to the Bloomberg surver of economists, the MPC is expected to hold its target for bond purchases at 375 bln pounds ($578 bln). Mr. King, who has governed the British regulator for a decade, steps down late June and will be replaced by a former Bank of Canada Governor Mark Carney.
May MPC minutes showed that Mr. King called for additional 25 bln pounds QE in order to support the economic recovery, but his idea was rejected for a fourth consecutive month. “When the June minutes are released they’ll likely show another 6-3 vote in favor of QE”, TD Securities analysts forecast. “With June's meeting representing Mervyn King's last hurrah as governor, other Committee members may be half-minded to support his recent desire for more stimulus as a parting gift,” note Capital Economics researchers. According to BBH economists, the BoE governor “is leaving as a nascent recovery seems to be taking hold”.