GBP: A stitch in time
The MPC's decision to extend quantitative easing surprised the market. The decision has several implications for the GBP. It lowers its likely short-term profile of monetary policy but could raise it next year. In the short term, looser policy and the increased uncertainty surrounding prospects could weaken GBP. But the implications further out may be more positive. The more policy easing there is, the quicker the economy is likely to grow and the sooner it will need to be tightened.
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