BOE MINUTES: MPC voted unanimously to keep rates at 0.5% and extend QE programme by £50 bln

The BOE minutes reveal that the MPC voted unanimously to keep rates at 0.5% and extend QE programme by £50 bln in May.

All members of MPC favoured extending QE, but there was some discussion whether it should be by £50 bln or £75 bln. It was decided QE programme would be reviewed every month, and asset purchases could be raised or lowered as appropriate.

Surveys show signs economic decline moderated, but give little insight into robustness of recovery.

CPI is likely to drop below target in coming months, spare capacity expected to weigh down on it for some time.

Cable meanwhile is doing ok, especially given BOE considered doing even more QE at their last meet. Cable is presently up at 1.5510. Technical resistances at 1.5525/30 and 1.5545/50.

Sources report decent buy interest lined up down at 1.5450.