MPC member Sentance says the BOE may pause its bond purchase plan if it is justified by forecasts. Even if it pauses, it could do more in the future, he says. The economy is already benefiting from a big monetary stimulus, he says. He does not expect the MPC to move quickly from monetary stimulus to tightening. He says we should see some evidence of positive growth in the second half of 2009.
Sounds like Sentance would like to pause QE and level rates low for a “considerable period”. That’ a mixed bag for the pound. Cable trades up at 1.6520, supported by wide-spread reflation hopes.
