Bank of England causes GBP surge

Source: Dukascopy Bank SA
On September 23, the Bank of England published its Monetary Policy Summary. The document reveals the future BoE Asset Purchase Facility, Official Bank Rate and how the Monetary Policy Committee voted on both the rate and the asset buying.

Quoting the statement: " The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 22 September 2021, the Committee judged that the existing stance of monetary policy remained appropriate.

The MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion.

Committee voted by a majority of 7-2 for the Bank of England to continue with its existing programme of UK government bond purchases, financed by the issuance of central bank reserves, maintaining the target for the stock of these government bond purchases at £875 billion and so the total target stock of asset purchases at £895 billion."

Statement on Monetary Policy

Monetary Policy Summary, September 2021

On the announcement, the GBP/USD initially dipped to 1.3670. However, afterwards, a surge began, which pierced the 1.3700 level's resistance.

On a larger scale, the announcement fuelled the recovery of the rate from the 1.3620 level, which began at GMT midnight to September 23.

Initial Reaction

Larger scale situation

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Thu, 23 Sep 2021 11:51:00 GMT

Swiss monetary policy is unchanged

On September 23, the Swiss National Bank announced its monetary policy for the near term future. In general, the bank stated that it sees its policy as suitable and would not change anything. Moreover, the Chairman of the bank stated in a press conference afterwards that there is no reason to change the policy. Quoting the statement: " The SNB is maintaining

Wed, 22 Sep 2021 18:14:34 GMT

Federal Reserve causes volatility

On September 22, the US Federal Reserve Federal open Markets Committee published its Economic Projections and Statement in addition to the Federal Funds Rate. Namely, US Monetary policy was revealed. In general, the bank revealed that inflation in US had been picking up. Due to that reason, the central bank will keep its policy intact until the 2% inflation target

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