BOE Leaves Policy Unchanged as Expected January 2013

The Bank of England left the interest rate unchanged at 0.50% (almost 4 years at this rate) and the QE program unchanged at 375 billion pounds.

GBP/USD continues trading a bit higher, at 1.6056, a safe distance from support. The pair made nasty false breaks in recent weeks: rising above 1.63 only to fall, and dipping under 1.60 only to bounce higher.

Higher inflation limits any potential hikes in the QE program for now, despite the fear of a triple dip recession. For more on the pound, see the GBP/USD forecast.

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile

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