The Bank of England (BoE) exceeded expectations by announcing GBP150 B of additional quantitative easing (QE) in November. For now, the GBP remains content with the BoE policy and hopes for the best from Brexit talks, taking its cue from global risk appetite. Looking into next year, the challenges that the UK economy faces should see downside risks for the GBP, economists at HSBC apprise. Key quotes “On 5 November, the BoE announced that it had increased its QE purchase programme by GBP150 B. Meanwhile, the central bank kept its benchmark interest rate unchanged at 0.1%. Unsurprisingly, the additional easing reflected the weaker near-term economic outlook as a result of rising COVID-19 infections. The GBP weakened initially, but that did not last long. The BoE also did not take the route of negative interest rates, for now at least, and retained a rather optimistic view on 2021 growth of 7%. However, the BoE still sees the risks skewed to the downside and the inflation projections also hint at room for more easing.” “Looking into 2021, we believe the outlook for economic growth is likely to become a chief differentiator for FX. For the GBP, even if a Brexit trade deal is secured (which is also our central scenario), the UK economy still faces the additional headwind from moving to a new trade regime alongside the challenges of COVID-19 and a faltering cyclical recovery. The UK government’s fiscal firepower to respond also faces the constraint of a high and rising debt level. All this suggests that the outlook for the GBP remains thorny.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CHF extends sideways grind around 0.9900 in quiet day FX Street 2 years The Bank of England (BoE) exceeded expectations by announcing GBP150 B of additional quantitative easing (QE) in November. For now, the GBP remains content with the BoE policy and hopes for the best from Brexit talks, taking its cue from global risk appetite. Looking into next year, the challenges that the UK economy faces should see downside risks for the GBP, economists at HSBC apprise. Key quotes “On 5 November, the BoE announced that it had increased its QE purchase programme by GBP150 B. Meanwhile, the central bank kept its benchmark interest rate unchanged at 0.1%. Unsurprisingly, the additional easing… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.