Friday, 31 July 2015

Bank of England

The Bank of England, or the Bank of England is the central bank of the United Kingdom. The current bank governor is Mark Carney, who succeeded Mervyn King. The Bank of England was founded in 1964, nationalized in 1946 and made independent from the government in 1997.
The Bank of England is responsible for:

    
promote and maintain monetary and financial stability in the UK,
    
adjust the exchange rate policy,
    
ensure the distribution of the pound in England and Wales
    
lend to commercial banks.
Since 2009, the Bank of England by the so-called Asset Purchase Facility (APF), a securities purchase plan aimed at improving the liquidity situation in the market. At the same time, the bank carries out the plan of quantitative easing (QE).
The MPC is the Monetary Policy Committee, which is the decision making body of the bank.Once a month a few days away from the meeting of the board of directors of the bank, it is published in the minutes of the MPC.The minutes of the MPC
Minute by MPC are released monthly, 13 days after the official announcement on interest rates by the Bank of England.
The response of the minute is written in the form: XXX.

    
The first number indicates how many of the members have voted because the rates were increased.
    
The second number indicates how many voted in favor of a rate cut.
    
The third number indicates how many have voted to keep them unchanged.
The publication of the minutes is interpreted as a market mover for the Forex market. It is, in fact, a useful tool to predict future decisions of the MPC.

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