"I don't think we'll even get a statement tomorrow so we will be waiting for the Inflation Report and focusing on the unemployment rate"
- Ross Walker, an economist with RBS
As it was widely expected markets gone wild on Thursday, even though there was no surprises from the U.K. policymakers. The Pound lost 0.07% against the U.S. Dollar, after the Bank of England decided to keep its quantitative easing unchanged, while the key refinancing rate stood at the record low of 0.5%. The BoE stayed pat on the monetary policy in November partly due to the fact they are preparing the presentation of central bank's quarterly update to growth and inflation, as well as its forward guidance, scheduled on November 13.
Carney also said they would not even think about raising rock-bottom interest rate until country's unemployment rate falls to 7% or even lower, that is not expected to happen until late 2016. Nevertheless, investors are betting unemployment would fall much faster, given the speed of economic amelioration this year, as the U.K. has become one of the fastest growing nation's in the world.
Among constantly growing optimism about the U.K. economy, Mark Carney stressed out he may be forced to curb market's enthusiasm if he wants to keep the recovery on track. On the back of strong fundamental data the Pound advanced 5.6% against the Dollar since the start of July. However, the BoE is expected to raise its growth forecast.
© Dukascopy Bank SA