GBP up on the BoE minutes
The British pound has got another round of support post the release of the MPC minues, touching a fresh high of $1.6160 (highest since Oct. 28). As expected, the MPC members unanimously voted to leave the rates and the QE program unchanged at 0.5% and £375 billion respectively.
The BoE minutes also show the economy is sustainably recovering, but downside risks for UK growth still exist. Uncertainty still persists that the pace of productivity could increase faster than the demand. Regarding the inflation, the BoE stressed that expectations remain firmly anchored, adding that a strong GBP would keep downward pressure on prices. The BoE emphasized once again that the unemployment rate at the 7% threshold does not necessarily represent a trigger for hiking rates.