Wednesday saw the English pound lose value after minutes from the central bank policy meeting earlier this month indicated support for increased asset purchases, Bloomberg reports.
Three members of the Monetary Policy Committee voted this past February 7 to expand asset purchases by 25 million pounds to 400 billion pounds. But those votes, which included that of outgoing governor, Mervyn King, were trumped by six votes against the measure.
"We had expected that the MPC would become concerned about the tightening effect of higher gilt yields," states a Wednesday email to Bloomberg authored by fixed income strategist Sam Hill with Royal Bank of Canada in London. "We are surprised about the extent of their apparent sensitivity to a comparatively modest move in the grand scheme of things. Another move higher in yields could require the MPC to walk the walk on asset purchases."
The currency fell to its 15-month low against the common currency of the European Union on Wednesday.
As King prepares to retire in June, The Financial Post reports Mark Carney – now the outgoing Bank of Canada governor – said he is aiming to strengthen the economic performance of Europe.
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