After Wednesday’s FED meeting interest rates were left unchanged. The US Central Bank expects that economic activity in the country will ramp up with inflation the following suit. Unemployment is expected to continue decreasing. A potential scenario sees rates remaining steady up until 2023, contrary to expectations among investors.
This news had a negative impact on the Dollar with the Greenback losing ground as the US Index went down 0.5%, 0.7% against the Euro, and 0.1% versus the Japanese Yen.
Meanwhile, UK’s England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion. The Committee voted unanimously for the Bank of England to continue with its existing program of UK government bond purchases, financed by the issuance of central bank reserves, maintaining the target for the stock of these government bond purchases at £875 billion and so the total target stock of asset purchases at £895 billion.
