BOE Governor King says he doubts rates can go any lower (after cutting them to 0.5% earlier today). We are now switching to injecting money into the economy, he says. There is no limit to how much money the BOE can pump into the economy, King says, giving him confidence it will work.
The Fed cut to a range between 0.0 and 0.25% and the BOC is now at 0.5% and exploring quantitative ease. King has left himself slightly more room for maneuver. The ECB, now at 1.5% and headed lower has in the past indicated a 1% floor.
Cable is range-bound today, absorbing well confirmation that quantitative ease has begun. It trades now at 1.4115.
