Thursday, December 09, 2010
Bank on hold, trade a bit disappointing
Posted by David Smith at 12:15 PM
Category: Thoughts and responses

Bank rate has been on hold for so long now that we no longer expect any change. Not since March 2009 have rates been moved, and it is a safe bet that we will get to the second anniversary of that without any change. Quantitative easing has also been maintained at the exisiting 200 billion. As things stand, it is hard to see what might provoke the Bank into action in either direction.

Meanwhile, the latest trade figures look superficially disappointing, with the overall goods and services deficit widening from 3.8 billion in September to 3.9 billion in October. However, the September deficit was originally published as 4.6 billion, so not too much to worry about. More here.