Seems like a lot of news from GBP, USD, EUR that will be coming on tues-thurs...
Pretty high volatility week ahead!
Pretty high volatility week ahead!
The Bank of England currently pays financial institutions 0.5 percent to hold reserves at the central bank. While the Bank of England is deliberately boosting their reserves by buying 175 billion pounds ($289 billion) of bonds through so-called quantitative easing, King says he doesn’t want it to go too far.
“As we engage in asset purchases, it automatically raises reserves in the banking system,” he said. “We don’t want reserves to be unnecessarily high, and we have withdrawn other ways to inject reserves.”
The pound dropped after King’s comments, declining 0.8 percent to $1.6485.