Bank of England Governor Mervyn King says the Bank will first focus on corporate bonds, commercial paper and CGS paper (what ever that is). They methods used will vary depending on market structure for each asset, he says while saying they will increase buying gradually. The Bank will keep it under review if it wants to uses asset purchases as part of monetary policy. If so, it will ask the government to authorize a change of scale in the program.
Cable has lost some of its bid after earlier reports of Sterling buying from Asian central banks. It trades now at 1.4290.
