11, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Bank of England keeps a hold policy.

The Bank of England (BoE) decided to leave the policy unchanged as it was expected. According to the inflation will remain above its 2% target over the next two years, and pointed out that a large stimulus may undermine the economy and hit the inflation. According to the NIESR GDP showed no growth in January - 0.0% (up 0.3%).

The next head of the Bank Carney testified before British parliamentarians.

Mark Carney will become the head of the bank this year. The last Thursday he said that he will not change significantly the current strategy of the monetary policy of the central bank.

However, he added that it would be important to consider monetary policy sporadically.

When asked about the current monetary policy, the UK, Mark Carney said: "On the basis of a flexible inflation targeting should be wide-ranging, but the details need to be reviewed and may be changed."

Mark Carney, which will replace the current head of the Bank of England King, in July, declined to higher inflation, and instead said the central bank should consider how to implement an exit strategy.

He also said that the changes in the economic situation may require some flexibility in the future. Furthermore, he added that the central bank may be affected by the exchange rate in the extreme scenario. In addition, Carney said the Bank of England should work closely with the ECB to the European Banking Association. As a result, the pair GBP/USD rose, in contrast to the weakness of the euro, which fell after the Draghi's press conference.