British interest rates unchanged position of the European Market Buzz difference waves (1)

Thursday (November 4) night, Bank of England and European Central Bank kept its benchmark interest rate unchanged, the pound against the U.S. dollar hitting a 10-month high, breaking through 1.6200, the euro against the dollar since mid-January this year, the first time exceeded $ 1.42.

The industry said that the European Central Bank and Bank of England base rate has remained unchanged, with the inevitable differences between the Fed's position will be significantly boosted the euro and sterling, European currencies will be short-term high.

European Bank of England left interest rates unchanged

Thursday 20:00, the Bank of England announced to keep interest rates unchanged at 0.5%, maintaining the assets of 200 billion pounds to buy the same size. Interest rate decision announcement, the British central bank did not comment.

Industry sources, the Bank of England to maintain the current monetary policy unchanged, compared to 6,000 billion dollars in assets the Federal Reserve to buy the policy is tight, good pound.

Data showed the UK's second-quarter GDP growth surprisingly strong 1.2%, and the initial third-quarter GDP growth of 0.8% qoq, to double market expectations, reflecting the recovery of channels is still in the British economy, the Bank of England to restart the cooling of the quantitative easing policy trends, the implementation of interest rates unchanged.

October UK manufacturing sector activity for the first time since the March data for accelerated growth is supported this view. UK October services purchasing managers index (PMI) was 53.2, the highest in June to the highest level, is also higher than the expected 52.5. At the same time, the British Retail Consortium (BRC) released data show that the UK BRC shop price index in October rose 0.3% monthly rate, rose by 2.2% per annum; September the index rose 0.2% monthly rate, annual rate of 1.9%.

In view of the Bank of England after King said the Bank of England raising interest rates move is probably the first time, the Bank of England's quarterly inflation report published coincide with the time, the industry expects the time Bank of England may raise interest rates for the first time in May 2011 or August.

However, the prospects for the UK economy is facing uncertainty, the government in October announced measures to support large-scale reduction in 2011 is likely to limit economic growth.

Research Fellow, Lv Xiaowei a German foreign exchange on the "Daily News" said that the British preference for the recent data. "Britain is better than the overall economy in Europe, while sterling also stronger than the euro."

The same day, the European Central Bank announced that for 1% of the benchmark interest rate unchanged, overnight lending and deposit rates at 1.75% and 0.25%.

European Central Bank President Jean-Claude Trichet said in his speech, the potential economic recovery in the euro area remained positive momentum, but the economic outlook still uncertain. "Although recent economic data, but the assessment of the economy largely unchanged. The economic outlook continues to face a slight downside risk."