Sterling rebounds after Bank of England keeps QE unchanged

Traders sold sterling this morning on expectations the bank would restart the printing press, driving the pound below $1.50 against the dollar to a new multi-year low of $1.4967. It was thought that, following the close decision last month on further QE - when the MPC was split 6-3 - there might by a fresh injection of stimulus. However, the MPC instead voted to keep QE unchanged at £375bn and rates at 0.5%. The announcement gave sterling a lift, reversing earlier falls, moving up to $1.5068 - a gain of 0.33% on the day - by 12.10pm. Some analysts had anticipated the MPC would v...