LONDON (MNI) – The Bank of England saw the cover ratio at the final
auction in this tranche of quantitative easing, the stg1.0 billion seven
to 15 year reverse gilt auction Wednesday, rise to 3.6 from 3.35 a week
ago.
The BOE Monetary Policy Committee raised the QE target by stg50
billion to stg375 billion back in July, with the latest stg50 billion
tranche to be completed over four months. By the end of last week the
BOE had completed stg371.784 billion of asset purchases and following
the three auctions this week it has reached the target.
There will be no auctions, therefore, ahead of the MPC’s November
7 and 8 meeting.
Analysts have become increasingly skeptical that the BOE Monetary
Policy Committee will sanction further quantitative easing at its
November meeting.
On Tuesday economists at Royal Bank of Scotland became the
latest, following those at Barclays and elsewhere, to pull their call
that the MPC will sanction more QE next month.
-London newsroom 0044 20 7862 7491; email: wwilkes@marketnews.com
[TOPICS: M$$BE$]
